9-15% interest rates, 2-5 points upfront, 6-24 month terms.

LTV 65-75% of purchase price or ARV (whichever lower).

Example: $300k property, 70% LTV = $210k loan at 12% rate, 3 points ($6,300), $2,100/month interest-only = $18,900 total interest for 6 months + $6,300 points = $25,200 total cost.

LTV = Loan/Property Value (65-75% of purchase or ARV).

LTC = Loan/Total Cost (includes purchase + repairs, typically 90% max).

Example: $300k purchase + $75k repairs = $375k total cost. 70% LTV = $210k loan. 90% LTC = $337.5k loan.

Lenders use LOWER of the two to limit risk.

Interest + Points + Fees.

Example: $200k loan, 12% rate, 6 months = $12k interest. 3 points = $6k.

Origination/appraisal/legal fees = $2-4k.

Total cost: $20-22k (10-11% of loan).

Effective annual rate ~22-24% when fees included.

Compare to conventional 7-8% but 30-45 day close vs 3-7 days hard money.

ROI = (ARV - Purchase - Repairs - Loan Costs - Holding Costs - Closing) / Cash Invested.

Example: $450k ARV - $300k purchase - $75k repairs - $25k loan costs - $15k holding (6mo insurance/tax/utilities) - $30k closing (6% selling costs) = $5k profit / $80k cash invested = 6.25% ROI (12.5% annualized for 6 months).

Use hard money when: (1) Property needs major repairs (non-financeable), (2) Need fast close (3-7 days vs 30-45), (3) Credit issues (FICO 620+ but not 740+), (4) Short hold (6-12 months flip vs long-term rental), (5) Multiple projects (conventional limits 4-10 mortgages).

Hard money 12-15% ok if flip margin >20%.

25-35% down (100% - LTV).

Example: $300k property at 70% LTV = $210k loan, $90k down (30%).

Some lenders offer 90% LTC covering purchase + repairs but require proof of funds for remaining 10% plus reserves (3-6 months PITI).

First-time flippers typically need 30-35% down, experienced investors 25-30%.