At Velocity Commercial Funding, we have the most competitive interest rates when working with hard money loans. Typically in private lending you will have a higher interest rate and that’s because we just don’t have the ability to charge interest over 30 years schedule much like a conventional lender.
We are a true short-term private lender with terms of 12 to 18 months. Hard money lenders typically charge about 12 to 16 percent interest, the good news is you’re able to significantly reduce the amount of interest pay by how long you hold a loan. Let’s say you’re an experienced flipper who is able to turn over the home within about five months, well then you will have paid about 5% interest total and that’s because we charged 1 percent interest per month. 1 percent of the total loan amount and that’s really important to know when you’re working on your bottom line budgeting.
So with a variety of loan programs, no prepayment penalty and efficient service. Those are three great reasons to call Velocity Commercial Funding for your next real estate investment purchase. Velocity Commercial Funding will be here when you need us.