First hard money loan

[Marvin Meng]

Hello all! 

I just finished my first serious rehab. It wound up being a lot more complicated, expensive and time-consuming than I expected but it's finally done. I've kept meticulous notes and all receipts. Had this been a hard money loan it would've gotten ugly (probably). Now I think I'm ready to take what I've learned and do the next one using hard money. I'd love to hear if any of you had similar experiences: Did you try a conventional construction loan before trying hard money? How detailed should I get in my analysis of the last deal in order to predict expenses in the next rehab?

Thank you!

[Kevin M Finley]

Like others said, don't over-dwell on the rehab costs. No two deals are alike and everything will cost different amounts. You will notice ranges, and you will start to hone in on your costs, but just know you will be wrong... every time. 

I used hard money loans for my first three rehabs and now use private money. Hard money was fine but you do need to ensure you have plenty of working capital, understand ALL the costs of these lenders, and know your numbers inside and out. I paid 5 points and 15% on my first rehab, totaling about $10k in fees and interest on a $60k loan. However, I made $23k. When you're hungry, half a sandwich is better than no sandwich.