Hard Money Lending: upfront money needed?

[Yadira Gutierrez]

Hello BP Investors!

I have been researching for hours and I still cannot figure out if I need to bring money to the table through Hard Money Lending.

If I understand correctly, I could get around 70% of the ARV (depending on company). Lets pretend that with that 70% I can buy and repair the property.

Do I need a down payment? Collateral?

How do I pay for the "points"? Upfront or are those points "roll over" and included on the loan?

Back to the initial question, any upfront money needed? Is there any scenario where I can borrow without any money out my pocket? 

I cant wait for your responses, you guys rock!

Happy Investing...

Yadira

[Brie Schmidt]

Originally posted by @Yadira Gutierrez:

@Brie Schmidt

@Jay Hinrichs

Thanks so much for the info, it makes sense!! 

Anybody want to contribute with a breakdown of the process on any $$ scenario? Just so I have an idea of how would work with real numbers?

Cant wait!

Yadira

 This is not my area of expertise, so this is a ballpark.

Say you want a property that costs $50k and needs $50k of work - at the end of the day it will be worth $125k

So you need $100k - The HML will lend you $80k.