Hard Money Costs Too Much?

[Vincent Plant]

Does Hard Money typically cost 30-40% of the purchase price?? 

I am considering buy a home to flip. I have done a handful of flips using cash, partnering with friends, and making it work. 

I am eyeing up a property I want to buy that costs much more than usual so my plan was to use a hard money loan to purchase, and rehab it with my own money, then sell. 

I talked to a hard money guy and I was shocked at the numbers. 

$325k purchase price.

$220k loan amount. 

$120k out of pocket money down to obtain the funds.

Huuuh??? What's the purpose of trying to get a loan when I have to pay that much out of pocket just to get it?