Hard Money Costs/Questions

[Brenon Harbin]

When reaching out to potential hard money lenders, what are some good questions to ask? 

What is the overall process like? 

& What are the costs associated? What type of rates and points are first time investors paying? I see that most will have you pay points up front, then monthly interest payments, and the rehab costs can be taken out as draws. 

What would be my money costs on this hypothetical flip situation :

- New investor (First deal)

- Purchase price $100k

- Rehab cost $30k

- ARV $200k

[Odie Ayaga]

A lot of your questions are best handled in a conversation versus bulletpoint in a forum. That could be with a potential lender or with someone who is knowledgeable about working with them. A good starting point is to look at some lender websites to get an idea of the vernacular and terms to determine what you do and don't understand and what questions may come to mind.