Appraisal vs BPO: What Valuation You’ll Get on a Hard Money Deal (and Why)
Valuation is often the pacing item in a hard money closing.Some deals require a full appraisal; others use a BPO [Broker Price Opinion] or an alternative valuation method.The method depends on asset type, leverage, market data quality, and lender policy.You reduce valuation surprises by submitting strong comps and a realistic ARV [After Repair Value] rationale […]
Points vs Interest Rate: How Hard Money Really Gets Priced
Hard money pricing is a mix of points, rate, and execution reliability.Points are paid upfront at closing, while the rate is the ongoing cost during the hold.Two offers can look similar on rate but be very different in total cost because of points and fees.The correct way to compare offers is total dollars over your […]
LTV vs LTC: The Two Leverage Numbers That Control Your Hard Money Terms
LTV [Loan-to-Value] and LTC [Loan-to-Cost] are the leverage metrics that drive risk, pricing, and approval.LTV compares your loan amount to a value number, such as as-is value or ARV [After Repair Value].LTC compares your loan amount to your total cost basis, typically purchase plus rehab.Investors win by knowing which metric a lender is using for […]
ARV Explained: How to Estimate After Repair Value Without Fooling Yourself
ARV [After Repair Value] is the market value of a property after your renovation plan is completed.Most ARV mistakes come from using the wrong comps or ignoring differences buyers actually pay for.The safest method is to match comps to your finished scope, then adjust conservatively for differences.If ARV is inflated, every downstream number breaks: leverage, […]
Hard Money Loan Checklist: What to Send to Get Terms Fast (Copy/Paste Template)
Most hard money delays come from incomplete submissions, not slow lenders.If you want speed, you have to submit a complete file that answers underwriting questions upfront.A complete submission includes the contract or payoff, scope, budget, comps, and a clear exit plan.Rehab projects need a line-item budget tied to milestones that can be inspected and funded.If […]
Bridge Loan vs Hard Money Loan: What’s the Difference and Which One Fits Your Deal?
Bridge loans and hard money loans are both short-term, real-estate-backed financing tools.In practice, the difference is usually the deal profile: stabilization versus value-add, asset type, and underwriting requirements.Hard money is often used for faster acquisitions and heavier value-add scenarios.Bridge financing is often used to reposition, lease-up, or refinance into permanent debt.Your exit plan is the […]
DSCR Loans Explained: How DSCR Works, How It’s Calculated, and How to Qualify
A DSCR loan is underwritten primarily on property cash flow, not personal income.The core question is simple: can the rental income support the monthly debt obligation?DSCR calculations vary by program, but the logic is always cash-in versus debt-out.You improve DSCR by increasing rent, reducing payment, or reducing leverage.Many investors use hard money to acquire and […]
Fix and Flip Loans Explained: Purchase, Rehab Draws, ARV, and Common Mistakes
A fix and flip loan funds an acquisition and renovation on an investor timeline.The two things that matter most are ARV credibility and a rehab plan that can actually be executed.Most draw problems come from vague scopes, missing photos, and unclear milestones.Your budget should be line-item and built around inspections and draw releases.Underwrite your flip […]
How Fast Can a Hard Money Loan Close? A Realistic Timeline + Checklist
Hard money can close fast because underwriting is deal-first and asset-based.Your closing speed is usually determined by three things: file completeness, title readiness, and valuation requirements.If you want speed, submit like a pro: contract, scope, budget, comps, and a clean exit plan.Most delays are avoidable: unclear rehab scope, missing entity documents, insurance gaps, and title […]
Hard Money Loan Rates Explained: What Actually Drives Pricing
Hard money pricing is driven by risk, leverage, liquidity, and execution certainty.The lender is pricing one thing: the probability of getting repaid on time, without a messy workout.The strongest lever you control is the file quality: clean numbers, realistic rehab, and a credible exit.Rates and points are not one number. They move with LTV (Loan-to-Value), […]
