I'm trying to guage whether I'd like to go the hard money route for my first BRRRR or save up a bit more and try to pay cash. I would be able to put about $20k toward my first purchase right now. I've read some books that highly recommend paying all cash for the first one. What's your thoughts? I'm obviously still in the research phase - not ready to buy just yet.

Nashville, Tennessee

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Matthew Crivelli

Lender
Massachusetts

Matthew Crivelli

Lender
Massachusetts

Replied May 30, 2025 07:55

Quote from @Andrew Syrios:

Hard money is very expensive (usually 12-15% interest and 3-5 points) so it makes BRRRRing very hard, especially in this market when BRRRRing is hard to begin with. If you can save up in a reasonable time frame, I would use cash. (Or find a private lender willing to do more like 7-10% interest and 0-1 point.)

Right now the hard money loans we are writing are more in the 10% - 2% range. In fact, out of the 100's of hard money loans I've written I've never been above a 12.5% rate.

Matthew Crivelli
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413-348-8346

Freedom Capital Funding, LLC

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