Hard Money Lender and Down Payment

[Taylor Davila]

Do hard money lenders typically require a down payment? If so, what would the percentage be? 

[Sean Richway]

@Taylor Davila  Most of it is driven from experience and credit.  There is typically a tiering system that we use as lenders to tier your experience and also look at your credit.  From there that will determine your down payment relative to your total cost of the project.  For example someone with no experience and 700+ credit may qualify for 85% of purchase and 85% of rehab.  Someone with 3 deals or more would qualify for 90% of purchase and 90% of rehab.  Typically a rule of thumb is with no experience and average credit you are looking at 15-20% down depending on the rehab size and complexity.  With 3 deals or more you can typically expect 10-15% down depending on the rehab size and complexity.