The remaining balance is paid once the project has been completed. 

What would help the community is for you to share as much info as you are comfortable, but the appraised values, current loan balances, and the current rents would be a good start. 

@Matthew BeckerMortgage balance:1.

Wholesale, foreclosure, and seller financing can work too, but I’ve noticed that careful analysis and having reliable local contacts often deliver the best results over time.So as you two gear up for your first flip, how are you balancing the potential risk with your long-term goal of buying rentals?

With a 40-year mortgage, however, most of your payments go toward the interest, and almost nothing goes toward the principal balance.

Most hard money will be interest only payments on the full approved balance of the loan whether or not if you have pull the draw funds for repairs.If you have any other questions, post them in the same thread below so that we can all learn from the answers.

It's a balancing act if you DIY projects to save some money.  

Also, it's likely that a slightly smaller amount of each payment will go toward principal since the loan balance is higher and the rates are likely nearly the same once the MI of 0.5% is added to the rate.

I generally prefer higher since I don’t plan on putting in small claims, it’s basically just for catastrophic loses and the savings in premiums over multpiple properties for multiple years should balance that out if I have ever have to use the insurance.

What’s the current loan balance and terms with the hard money lender?