How do you analyze deals on Hard Money?

Question

Just need help running numbers on a HM loan deal.

Trying to figure out all the numbers. How much I’ll be out of pocket, ARV, etc.

Can anyone explain the easiest way they do this?

Eliott Elias · Answer

This depends on so many factors, budget for holding the hard money for 6 months.

Tyrek Brown · Answer

You should never be more than 70-75% of the ARV into the property. For example:Property has an ARV of $200,000 and needs $30,000 in rehab.The max amount of money you can be into that project is $150,000 so you shouldn't be offering more than $120,000 for the purchase. You can determine any additional costs (fees, points, etc) from your lender.

Mark Munson · Answer

Hi @Aaron Heers

I own a hard money brokerage and I am an investor myself. If you have 15 minutes or so this week, I'd be happy to show you how to run comps. Ultimately, a loan summary/term sheet from a lender will give you all the specifics on the loan that you'll need. Feel free to reach out if needed.

How do you analyze deals on Hard Money?

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