CalculateRealEstateROI

BRRRR · Guide

Hard Money for BRRRR

Speed-of-close capital — when hard money makes BRRRR work and when it eats the margin.

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

Key takeaways

  • 10–14% rate, 2–4 points typical.
  • Close in 7–14 days.
  • 6–12 month term.
  • Best for purchase + rehab, not hold.
  • Refinance out as fast as possible.

Core concepts

Loan structure

Purchase + 100% rehab in escrow draws.

Costs

Rate + points + draw fees + appraisal.

Exit

Refinance to DSCR or conventional.

Step-by-step framework

  1. 1Pre-qual 2 hard money lenders.
  2. 2Compare points, draw schedule, fees.
  3. 3Close.
  4. 4Draw on milestones.
  5. 5Refinance at 90 days.

Common mistakes to avoid

  • Picking lender on rate alone.
  • Slow rehab burns interest.
  • No refi lined up.

Frequently asked questions

Personal guarantee?

Almost always.

Credit score required?

650+ typical.

Can I extend?

Yes — 1–3 month extensions at fee.

Hard money on rentals?

Bridge to refi only.

Action checklist

  • ☐Two lender quotes.
  • ☐Refi pre-qual.
  • ☐Draw schedule.
  • ☐Exit plan in writing.

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