private money for flipping

[Alex Shaughnessy]

Hello BP. I am newer and had a question about obtaining private funding for flips. I know most people are getting 7-10% for private money but if a flip is only taking one month how is it paid out?

for example

100k at 7% would be 7000 per year but after 1 month it is 583. so do they get there money back plus 583 or are they getting 7% of there money no matter what. Sorry if this is a stupid question

[Stanley Parsley]

look at the layout at orchard funding it lays out how most hard money is paid out and the requirements

there are other lenders that have differing requirements for funding and different ways they pay out

make sure if you use the money there is a way the lender can do inspections in a timely manner and get you the draws you need to continue in the rehab refi process or else you could be put in a position where you are waiting for draws and paying a lot of interest on the loan

enjoy