Hard Money Lenders Math doesn't make sense, Help!

[Sam Erickson]

Hi Everyone,

I'm residential rehabber that has completed a couple flips on my own (by living in them) and one with an investor. I'm looking to continue to do them with my investor but also more on my own (I would like to have 2-3 going at a time rather then the 1 at a time now). Being that I have a mortgage on my current house I don't qualify for a investment loan on a another property which is why I'm looking at hard money lenders.

I have looked at a few and I'm seeing this for requirements:

6-month loan

Rate: 9-18%

MAX LTV: 60%

Minimum Down: 30%

Loan fee: 3-5%

I'm good with the rate and the loan fee but what I don't understand is the LTV and Down payment. If I had that kind of money to put down, 30-40% I wouldn't need a hard money lender.

Am I missing something? also how can the LTV be 60% but then the down payment be 30%, that math doesn't add up? Any help would be appreciated.

Sam