Calculating Hard Money Cost

[Matt Michaelis]

Is there a great Hard Money Calculator out there? I understand the concept of hard money and the fees and interest but not how the costs stack up of 2 months compared to 4.

I’ll love to hear any feed back, suggestions, or complicated breakdowns!!

Thank you

[Tom S.]

@Matt Michaelis  That's a good suggestion for someone to put one on the site (if there's not one already,but I'm not aware of it).  Personally I use Excel.  So if you're borrowing $100k at 12% interest only, it's 1% per month or $1k per month.  So pretty straight forward.  3 points up front = $3k.

The tricky part is that you'll need downpayment, cash reserves and you'll have to front the initial rehab and get paid back in draws, and that varies by lender.  

I've posted in the past for a $50k purchase and $25k rehab I last did, I needed $30k in cash ($10k down, $10k reserves, and $10k to start rehab).

Hope that helps,

- Tom