What are typical hard money loan terms?▼
Hard money loans typically have 10-15% interest rates, 1-3 points, 65-75% LTV, and 6-18 month terms. They close fast (7-14 days) but cost more than conventional financing.
What holding costs should I include?▼
Monthly holding costs typically include: property taxes, insurance, utilities, lawn care, HOA fees, and loan payments. Budget $1,500-$3,000/month for a typical single-family flip.
How do I estimate After Repair Value?▼
Pull 3-5 comparable sales (comps) from the last 90 days within 0.5 miles. Adjust for square footage, bedrooms, condition. Your real estate agent or appraiser can help with ARV.
What closing costs should I budget?▼
Buy-side: 1-3% (title, escrow, inspection). Sell-side: 6-10% (agent commissions 5-6%, title, transfer taxes, concessions). Total: 8-13% combined.