It was usually for a month or so and if they had funds, I let them in.

They would not be recording a lien or anything, just giving me the funds to purchase cash.

Hopefully as the rates and the housing market loosens so will some of these guidelines in the HML programs. from talking to hard money funds especially those who operate in more than 10 states, and 5 years of experience with underwriting teams, I'd actually disagree and say new construction is preferred to rehab due to experience level to enter the market. there's BP lenders that will do 15% LTC with 1-2 new build experience.

These are a couple of things we do during our lease audit process.This is a prime example of why investors need reserve funds.

I find  Most people who invest in stocks or index funds are not investing for the dividends.

Having a contingency fund is key.

The buyer would need to show solid financials also of course (good credit, experience operating rentals, proof of funds for down payment and adequate reserves to cover any unexpected cap ex).

Finance was a combination of a few different vehicles and ultimately ended with a HELOC which was then used to fund multiple other projects over the years.

However, there are lenders who offer more flexible terms or even no prepayment penalties, depending on the deal structure and your investment strategy.To find such lenders, here are some options to consider:No Prepayment Penalty Loans: Some lenders, often private or portfolio-based, offer DSCR loans without prepayment penalties, though the trade-off might be a slightly higher interest rate or fees.Yield Maintenance or Defeasance Alternatives: Ask about other prepayment structures like yield maintenance, which can sometimes be less restrictive depending on market conditions.Custom Terms: There are lenders (like us at Phoenix Funded) who can structure loans tailored to your needs.

Most hard money lenders will fund 70% of the purchase price and 100% of the rehab costs.