Hard money terms to start a BRRRR

[Kimberly McCall]

What are good terms for a hard money loan that we need to use to purchase a property and will later refinance after seasoning?

I have a guy who will do the purchase price for 20% down in a hold back account, 3 points and 10% interest and we pay closing.

[Dan Gamache]

@Kimberly McCall I assume you are buying a distressed property and then refinance after rehab is complete. If so, you should be able to get 10% down of total costs (purchase price + rehab budget) pricing is usually based on experience. 7.5%-9.5% w 1-2 points for experienced investors, 10%-11.5% w 2-3 points for newer investors. Short term loan (6-13 month). The lender will finance the purchase of property and you will have a credit line for the repair budget, as you complete work you can get reimbursement draws.