Analyzing deals using hard money to purchase

[Joshua Frank]

hello BP,

 I’m trying to analyze deals but I find it difficult to really grasp the concept while attempting to use hard money in order to find the deal most analysis calculators I use and see are based around conventional loans so how can I determine if it’s a good deal or not if I’m using hard money to acquire the property.
Should I even consider the hard money loan initially or just analyze the property based on the refinance? then apply the hard money loan terms to solely acquire the property and rehab?

[Tsipora Smith]

It will first depend on your exit strategy. If you're planning to use the BRRR strategy I typically do 2 different analyses. The first analysis I do is with the hard money and I'm just looking to at least break even during this period (we get the rehabs done pretty quickly and because the market is so hot it rents FAST). Then I do a second analysis based on the projected refinance interest rate to make certain I'll both cash flow and recoup my funds.