@Branny: Why are you seeking a loan, and at 14% monthly interest? Wasn't your SPO [Second Public Offering] and the consequent bitcoin price increase sufficient? I realize that attractive deals present themselves, but taking out a loan at 14% monthly interest is not how a real business handles such things.
Why not explore a less extreme approach, such as... a loan from a bank?
Why not explore a less extreme approach, such as... a loan from a bank?
Most banks want 2yrs of operating financials before they'll consider a loan to the business. One bank we've talked to will let us get by with about a year's worth of financials if the cashflow looks good. We won't hit 1 year for a few more months.
Hard money finance is one of the largest methods out there for real estate finance in the US for flips. 14% interest is quite common, most HMLs also want 3%-5% in points paid either up front or at the end of the loan pushing the APY yield to over 30%. At 14% APR we're still looking at making a significant amount of money off this specific piece of property.
@Branny: Why are you seeking a loan, and at 14% monthly interest? Wasn't your SPO [Second Public Offering] and the consequent bitcoin price increase sufficient? I realize that attractive deals present themselves, but taking out a loan at 14% monthly interest is not how a real business handles such things.
Why not explore a less extreme approach, such as... a loan from a bank?
Why not explore a less extreme approach, such as... a loan from a bank?
I think he said 14% yearly interest paid monthly, not 14% monthly interest. That is still higher than one should be willing to pay, but not as astronomical as you make it sound. Branny: Before jumping to 14% interest, why not see if you could get any investors at a much more reasonable rate, like 5% or 3%?
And it should be "subsequent bitcoin price increase", not "consequent bitcoin price increase", the SPO did not cause the price increase (as far as I can tell).
I've had virtually no interest at 5% and 6%. I have started to get interest in this avenue at 7% and am working with some groups who are showing said interest. Unfortunately these kinds of things take time (months) before you get the deals hammered out, and this specific property will be sold in 2 weeks or less.
