Hard Money- What Do You Pay?

[Brandon Turner]

Just curious, what do other people out there in Bigger Pockets land pay for Hard Money these days?

My main lender is 10 points, 10% APR, 2 year notes, LTV depends on the situation but usually around 75% ARV or cross-collateralizing another property for 100% ARV.

[Ann Bellamy]

Hard money varies considerably by location. So what one person pays in Oklahoma is likely not available in Florida.

My rates go from 11% interest and 5 points, to 14% interest and 2 points. Rates are deal and borrower dependent. The less cash you have in the deal, the higher the rates. Experience matters, as does the location of the property.

Standard hard money rates in MA and NH start at 14% and 4 points and vary up and down by deal. Although having said that, the terms "standard" and "hard money" are contradictions in terms.

In addition, the national "hard money" companies typically have higher rates to compensate for the lack of local knowledge.