Hard Money Loans for Flipping

[Chris Galetta]

I’m reading about hard money loans. How do you make sure the numbers make sense with hard money loans? For a flip, would you take the loan for say $100k, pay the high interest for a few months, put in $50k in reno of your own money, then sell the property for $250k? Therefore netting positive income?

Or do you take out $150k in a hard money loan for both buying the property and reno combined and then sell at $250k still netting positive

These are just example numbers, not an actual deal. I’m trying to understand how to utilize a hard money loan to get into the flipping game.