Struggling to find decent hard money

[Rochelle Gerber]

Hi everyone! Came back so excited from BPCON to really get going w/BRRRR and fix/flip. Finding it really hard to get decent hard money. Presenting average deals of : Puchase price 350-400,000. ARV 550-600,000. Hard money (multiple lenders such as Easy , Griffin, etc) all quoting barely 80% of purchase price so I will still have to come in with 20% (deal limiting if I am also putting all the money in for rehab). Can someone help advise what I'm missing? Why would I use hard money with all the points and fees if I have to put down 20% anyway?

[River Sava]

Hi Rochelle - 

Congrats on getting started with BRRRR and fix/flip. The reason you're seeing these terms often comes down to experience. For first-time or newer investors, lenders tend to be a bit more conservative with leverage and rates because they consider experience a key factor in risk assessment.

As you build a track record of successful flips/rehabs, you'll typically qualify for better terms, like higher leverage/reduced down payments. Once lenders see that you’ve proven yourself, it can open up more favorable terms, and some might even go as high as 90% or more on the purchase.