Typically there are no prepayment penalties on hard money loans, so you can limit your holding cost if you're able to quickly complete the project and sell or refinance in a few months. 

Prepayment penalties- usually 1-5 year terms.

If only someone had written a book to help people like you.I prefer you spend some time educating yourself before jumping in, but that depends on how bad the PM is and how quickly you can educate yourself and take control.If you choose to terminate, read your PM Agreement carefully to see if there are any termination penalties.

i do think it's challenging, though, for a brand new investor with zero experience to jump right into a huge rehab with a contractor they've never worked with before.the contractor might want a larger up-front payment to mitigate their own risk, and they're not going to be interested in any kind of fancy nonsense like a 'penalty' when they know a new investor has never managed a large project before.i have also found that some contractors, including reputable ones, don't even want to share itemized bids because they just don't want to have to argue about the individual line items. 

Prepayment penalties- usually 1-5 year terms.

Conventional, UWM Rate: 8.00%Lender Credit: $62030 Years Fixed You have to consider that a conventional loan does not have a Prepayment Penalty.

@Brad Herb Investing in a syndication via a Self-Directed IRA (SDIRA) offers tax advantages but comes with fees and limitations:Advantages:Tax Benefits: Gains grow tax-deferred (Traditional SDIRA) or tax-free (Roth SDIRA).Avoid Penalties: Keeps funds in the IRA, avoiding early withdrawal penalties.Diversification: Adds real estate syndications to your retirement portfolio.Disadvantages:Fees: Setup, custodian, and administrative fees can reduce returns.UBIT: If the syndication uses debt, income may be subject to Unrelated Business Income Tax (UBIT).Complexity: Strict rules; all income/expenses must flow through the SDIRA.Illiquidity: Syndications are long-term, locking up funds.Use an SDIRA if the investment is significant and the UBIT impact is minimal, especially with a Roth SDIRA for tax-free growth.Remember that RE, outside of retirement accounts, provides the biggest tax benefits.This post does not create a CPA-Client relationship.

So I can accept the proceeds from the two party check insurance will send without penalty of “tax on boot”?  

Give them the option of breaking the lease without penalty. 

Prepayment penalties- usually 1-5 year terms.