Using hard money for the first time

[Jessie Redd]

I am an experienced flipper. I usually use my own money to fund deals and do the painting, carpentry, backsplash and hire out the electrical, plumbing and HVAC to contractors. I recently paid off the mortgage on another rental that I own. This reduced the amount of money I had to continue flipping. I would like to make up this shortfall by using hard money. I am looking at a property that is listed for 199,900, it needs 30K in repairs to give it an ARV of 280K on the low end. I am proposing to borrow 184,900 to purchase it. I would be putting 15k down on the loan. I will use my own 30K to repair it, and I will still have 20k available in cash in reserve. What type of terms should I be looking for from the hard money lender. I have done 15 rehabs to date and have 3 rentals that I own out right that are cash flowing well. Not that is matters to the hard money lender, but my credit score is around 800. Any feedback would be greatly appreciated.