CalculateRealEstateROI

Financing

When does hard money make sense?

Short-term flip or BRRRR acquisitions where speed and asset-based underwriting beat the rate premium.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Short-term flip or BRRRR acquisitions where speed and asset-based underwriting beat the rate premium.

Expanded explanation

Hard money closes in 7–14 days vs 30–45 for conventional. Use when: distressed seller, off-market deal, rehab too rough for conventional, or you need certainty of close. Refinance into long-term debt within 6–12 months.

Examples

  • 12% / 2 points hard money on $200k flip, refinanced at month 9.

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