I was looking for a hard money lender on the internet...

"I want to purchase a mixed use property. Barber shop and flower store on the street level (both leased out). There is a vacant bar/grill next to the barber shop. Upstairs, it is a 3 unit apartment that was being used as a day care center prior to the fire.

The seller is motivated to sell it way underpriced! I can pick it up for about $400,000, and it was easily worth about $650,000 before the fire ruined the top level."

Question:

I was searching the internet and saw your hard money lender info at www.hardmoney.cc, but it seems to be pretty high interest rates. A couple spots down on my google search, I found another hard money lender.

I called up this hard money lender and told him about this property and he told me that he was very interested in lending on this deal. He said he could get me 100% financing with extra money for the rehab work needed upstairs.

The best news was that he thought with my 585 credit score that he could get the money at around 6.25% interest rate on a 30 year term.

He did mention that to get this loan I only need to "front" $4,500 for their due diligence on the property (appraisal will be on top of this fee). Why should I consider you as my hard money lender, your money seems much more expensive?"

Which of the following answers did I give?

A. "Bummer. I was hoping you wouldn't call that guy, I can't compete with his rates."

B. "Only $4,500 non-refundable up front? Not bad for that nice of a loan."

C. "Dude, what's this guys number? I have a combination gas station/night club/dry cleaner property that needs a low rate"

D. "Nobody likes me."

E. "Bwahahahaha."

F. "Another one bites the dust." (sung to the Queen melody)

G. Note: If you don't understand what's going on here, then you need to continue calling around and chatting with some more hard money lenders.