Hard Money for Buy and Holds

11 Replies

I've heard a few investors claim they wouldn't use hard money for buy and holds. Some hard money lenders offer sub 10% rates for buy and holds. So I am curious, what interest rate are investors looking for on buy and holds?


I think the people who use hard money for buy and holds intend on using hard money to complete the repairs. Once the borrower is finished with the repairs, the borrower is refinanced into a conventional 30 year fixed loan. 

In my opinion a decent rate to expect is 4.5-5.5% on a conventional and for the hard money portion- 9.99-14%. 

Trey Watson, Real Estate Agent in Colorado (#100071118) and TX (#632448)
(713) 208-0560

Hard money is available in the 9-10% range with low fees and no personal qualifying to speak of.  In our case, we offer 1, 2 and 4 years terms and interest only payments.  So depending on your deal and your goals, it is a much quicker way to access the cash you need for acquisitions and rehab costs, and in some cases, qualifying personally for either of these funds categories is not going to be possible for a lot of investors in the conventional lending world.

Ive lent hard money on a buy and hold but have been taken out after repairs or the borrower becomes eligible for conventional financing. You have to remember that a lender makes money by velocity of churning their money and usually wants to see 20% or better annually. if you keep this in mind when presenting you could see if the deal makes sense. For example lending at 14% and 4 points monthly without the velocity of compounded interest at a minimum is 22% annually. Hope this helps in your journey. Feel free to ask any questions you might have. All my best. 


LimaOneCapital offers a "Rental30" product that's for buy and holds. I have not used them in the past so this isn't an endorsement but a conversation with them seemed promising. They offered rates between 6.95% and 8.95%.

Has anyone reading this used them?

Hi all, 

I work for Lima One Capital. 

Our Rental30 program is a 30-year, fixed rate, fully amortized loan for the purchase, rehab, or cash-out of individual rental properties and portfolios. 

I'd be happy to speak with anyone interested in the program. 

Is the Rental30 credit driven? Asset based? What type of ARV/LTV do you lend on?

Does LimaOne offer any products that do not require an LLC? 

Originally posted by @Justin Thompson :
Originally posted by @Robert Klein:

@Justin Thompson Does Lima One Capital require title in an LLC? Thanks


 Hi Rob, 

Yes we do require title in an entity (LLC, LP, Corp, etc.)



Join the Largest Real Estate Investing Community

Basic membership is free, forever.