CalculateRealEstateROI

Financing

Hard Money Lending Strategy

Short-term asset-based loans enabling fast closes and rehab capital for flips and BRRRR.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Speed

7–14 day close vs 30–45 conventional.

Cost

10–14% rate + 2 points + 12-month term — only viable short-term.

Exit discipline

Refinance into long-term debt within 6–12 months.

Examples

  • 12% / 2 points on $200k flip, refinanced at month 9.

Practical applications

  • Distressed acquisitions.
  • BRRRR strategy.
  • Off-market deals requiring speed.

Common mistakes

  • Hard money without committed exit.
  • Underestimating points + interest carry costs.