Need Help Understanding Hard Money Loans. Thank You!

[Nicholas K.]

I am new to the BRRR process and I am trying to wrap my head around how hard money loans work. My questions are; Does the money pay for the property and the rehab costs? Do I put a down payment down? And if so, does the down payment cover the reno costs and the cost of the property? Or is it just for the property?

Thanks in advance! 

[Andrew Zannotti]

@Nicholas Krogmann as stated below it varies by lender, for my current loan I have 70% ARV, 80% LTV, I had to bring 20% of the LTV to the table, I financed my repairs but it works on a draw schedule, I pay for my renovations out of pocket in 5K increments then call the lender, the come out and verfiy and reimburse me for what I spent.