How much does hard money cost?

How much does hard money cost?

Investor · Oklahoma City, OK · Member since 2016 · 17 posts · 7 votes
I'm looking at using hard money for a rehab flip in Oklahoma City. What kind of interest rate, discount points, and other processing fees should I expect to pay? Thanks for any hard money or rehab advice!
1Reply
45 views

Most Popular Reply

Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
9y

For those readers who are scared away by the high interest rates of Hard Money lenders, remember

If hard money helps you do a profitable deal you couldn't otherwise do - it doesn't cost you anything - It makes you money.

See this reply in the discussion

29 Replies

Jump to latestLatest
  • Real Estate Professional · Dothan, AL · Member since 2017 · 22 posts · 14 votes
    9y

    If you're not paying interest or points then you're giving away equity. Equity is the last thing I want to give up. Sometimes you have to do it to get the deal done, but like i said its the LAST thing I want to do.

  • Lender · Northbrook, IL · Member since 2014 · 198 posts · 50 votes
    9y

    @Account Closed not only does it depend on the lender, but it also depends on your experience. Some lenders let you customize your rates with a varying combination of points and interest rates to create a loan that best suits you!

  • Investor · Oklahoma City, OK · Member since 2015 · 48 posts · 86 votes
    9y

    This may seem like a silly question, but do most people roll the points into the loan amount and end up paying interest on the combined balance or is it a down payment made at the time of the loan? I've got some opportunities to do some HML but haven't been charging points, just a reasonable interest rate with a flexible repayment. I have asked for "skin in the game" in the way of asking them to fund a % of the rehabs out of their pocket. Thanks!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.