Current Market Rates

Private Lending & Conventional Mortgage Advice
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Current Market Rates

Robert HoffmanBusiness Member
Member since 2026 · 16 posts · 7 votes

I’m getting more involved in private lending and trying to make sure I’m pricing deals in line with the current market.

Curious what others are seeing/charging right now for:

  • Fix & flip deals
  • New construction

From what I’ve seen so far, ranges seem to be around:

  • 12–16% interest + 1–3 points
  • or 13–15% with some backend structure (paid at sale)

Deals are typically shorter term (around 6–8 months).

Would appreciate any insight on what you’re seeing and how you’re structuring terms in today’s market.

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
6mo

That seems to be the ballpark, but I want to see the answers here!

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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    6mo

    That seems to be the ballpark, but I want to see the answers here!

    1Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    6mo
    Quote from @Robert Hoffman:

    I’m getting more involved in private lending and trying to make sure I’m pricing deals in line with the current market.

    Curious what others are seeing/charging right now for:

    • Fix & flip deals
    • New construction

    From what I’ve seen so far, ranges seem to be around:

    • 12–16% interest + 1–3 points
    • or 13–15% with some backend structure (paid at sale)

    Deals are typically shorter term (around 6–8 months).

    Would appreciate any insight on what you’re seeing and how you’re structuring terms in today’s market.


     That seems way too high on hard money rates for flips and new construction - a big national lender or broker with access to the big national hard money lenders should have rates more around 8-10% and 1-2 points, even without sterling experience/credit

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    • Robert HoffmanBusiness Member
      OP
      Member since 2026 · 16 posts · 7 votes
      6mo
      Quote from @Robin Simon:
      Quote from @Robert Hoffman:

      I’m getting more involved in private lending and trying to make sure I’m pricing deals in line with the current market.

      Curious what others are seeing/charging right now for:

      • Fix & flip deals
      • New construction

      From what I’ve seen so far, ranges seem to be around:

      • 12–16% interest + 1–3 points
      • or 13–15% with some backend structure (paid at sale)

      Deals are typically shorter term (around 6–8 months).

      Would appreciate any insight on what you’re seeing and how you’re structuring terms in today’s market.


       That seems way too high on hard money rates for flips and new construction - a big national lender or broker with access to the big national hard money lenders should have rates more around 8-10% and 1-2 points, even without sterling experience/credit


       What are you seeing from private lenders? Big banks have inspection and draw schedules that drag out the timeline. 

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    • Erik EstradaBusiness Member
      Lender · Member since 2022 · 6k+ posts · 1k+ votes
      6mo
      Quote from @Robert Hoffman:
      Quote from @Robin Simon:
      Quote from @Robert Hoffman:

      I’m getting more involved in private lending and trying to make sure I’m pricing deals in line with the current market.

      Curious what others are seeing/charging right now for:

      • Fix & flip deals
      • New construction

      From what I’ve seen so far, ranges seem to be around:

      • 12–16% interest + 1–3 points
      • or 13–15% with some backend structure (paid at sale)

      Deals are typically shorter term (around 6–8 months).

      Would appreciate any insight on what you’re seeing and how you’re structuring terms in today’s market.


       That seems way too high on hard money rates for flips and new construction - a big national lender or broker with access to the big national hard money lenders should have rates more around 8-10% and 1-2 points, even without sterling experience/credit


       What are you seeing from private lenders? Big banks have inspection and draw schedules that drag out the timeline. 


       Yea TRUE private money lenders are around that range. Institutional Hard Money will always be cheaper than an investor with their own capital to deploy. The benefit, as you mentioned, is the lack of standardization with draw schedules, conditions, committee approvals, etc.. 

      True Private lenders look at the deal, request very basic information and fund the deal if they like it.. 

      [email protected]818-269-7983
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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    6mo

    Robert, if you are new to private lending, order the "bible" of private lending, Lend To Live, here in the BP bookstore:
    https://store.biggerpockets.com/products/lend-to-live

    1Reply
  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6mo

    My private lender is at 12%.  This is a true private lender where he is an individual, not an institutional lender.

    0Reply
    • Robert HoffmanBusiness Member
      OP
      Member since 2026 · 16 posts · 7 votes
      5mo
      Quote from @Kenneth Garrett:

      My private lender is at 12%.  This is a true private lender where he is an individual, not an institutional lender.


       Are you flipping or building new construction? What is the usual length of your notes? 

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  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    5mo

    @Robert Hoffman

    My strategy with PML is BRRRR mostly. A few flips.

    0Reply
  • Doug SmithPro Member
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    5mo

    We manage private loan portfolios for small funds and one thing that is missed is that not all deals should be priced the same. Take conventional mortgages for example. A person with no debt and an 800 credit score that's putting 50% down is a much lower risk profile than a person with tons of debt, a 580 credit score, and no money to put down. Lenders don't price them the same, but we get calls from people that say "what's your rate" before they even introduce themselves. Pricing is going to depend on the risk profile and that carries a wide range. If your pricing out an experienced operator with low debt, strong assets, and a large chunk down, then many lenders are chasing them. The pricing you mention will not be competitive. Conversely, if you have a desperate, inexperienced operator that is having to borrow the down payment, you can pretty much charge what you want (within legal limits), but then you have to ask yourself if you want to accept that level of risk. I think your question is reasonable, but we tier our pricing when we underwrite loans, but if the risk is too much for us to accept, we don't do the loan at all. I hope that helps. 

    1Reply
  • Nick BelskyBusiness Member
    Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
    5mo

    @Robert Hoffman

    Ouch!  I haven't seen anything that high in years.

    Each FnF and GUC rates will vary greatly based on experience. But generally speaking we are currently getting deals funded in these ranges (assuming 1-4 units, CRE is slightly different):

    FNF - 90-95LTC at 8-12% and 1-2pts - most are 8-10% right now.

    GUC - 85-90LTC at 8-11% and 1-2pts - most are 8-10% right now.

    Most of our resources are 1pt, unless the loan is very small (say under $150k or very large (say over $2mm).  We rarely structure with anything on the back end as well. 

    Cheers! 

    [email protected]
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