Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
First-Time Home Buyer
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 7 months ago on . Most recent reply

User Stats

40
Posts
47
Votes
Robert Bell
  • Lender
  • 38119
47
Votes |
40
Posts

Reserve Funds Required For A Private/ Hard Money Loan

Robert Bell
  • Lender
  • 38119
Posted

As a private lender, we use reserve funds as a way to gage whether or not someone is financially ready to take on a real estate investment.  We use 10% of the loan as a rule of thumb.

Even though we can usually fund almost 100% of a flip, there are still many unforeseen issues that will arise.

We just don’t want a borrower to get in over their heads.

  • Robert Bell
business profile image
Avalon Capital, LLC
5.0 stars
60 Reviews

Loading replies...