CalculateRealEstateROI

Financing · Guide

Hard Money Loans

Fast capital for value-add and flips — 10–14% + points, 6–12 month term.

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

Key takeaways

  • 7–14 day close.
  • 10–14% rate + 2–4 points.
  • 6–12 month term.
  • Asset-based qualification.
  • Plan refinance exit.

Core concepts

Speed

Close in days.

Cost

Rate + points + draw fees.

Term

Short — refinance out.

Step-by-step framework

  1. 1Pre-qual 2 lenders.
  2. 2Compare points + fees.
  3. 3Close.
  4. 4Refi at 90 days.

Common mistakes to avoid

  • Slow rehab burns interest.

Frequently asked questions

Credit min?

650.

Personal guarantee?

Yes.

Extension cost?

$500–2000 per month.

Best use?

Flip + BRRRR.

Action checklist

  • ☐Two quotes.
  • ☐Exit plan.
  • ☐Refi pre-qual.
  • ☐Reserves for delays.

More from Real Estate Financing

Real Estate Financing Best Practices
Match loan term to hold period, optimize APR not rate, and plan the refinance ladder.
Common Financing Mistakes
Wrong product, wrong term, wrong lender — financing errors are expensive and slow to fix.
Beginner's Guide to Real Estate Financing
First loan — pre-approval, document prep, and product selection for new investors.
Advanced Real Estate Financing
Portfolio loans, blanket mortgages, lines of credit, and private capital — scaling beyond conventional.
Financing Resource Center
Mortgage calculator, comparison tools, and lender directories for capital stack decisions.
Conventional Investor Loans
Fannie Mae and Freddie Mac investor loans — cheapest rate, strictest qualification, capped at 10.