What does a Hard Money lender do in a BRRR?
Hello,
I have heard so many things about BRRR investing, and it is something I hope to do in the near future. I am brand new to Real Estate, and I don't fully understand what the Hard Money Lender loans in the process. Do they only loan the down payment? Or do they buy the entire property and they are the loan? Do they typically pay for the rehab costs as well? How does the interest rates work? Does the interest begin right away or after a certain period?
I know that's a lot of questions, so maybe if someone was able to break down a deal and what the HML does in the process would be awesome. I'm sure it changes for different lenders, but what is the normal rates and things paid for are my main questions.
Thank you!
Trevor Bragg