Hard Money Loan Calculator
Calculate hard money bridge financing for fix-and-flip investments. Model points, interest-only monthly holding costs, LTC limits, and net investor return.
Property & Hard Money Loan Terms
Configure purchase, renovation scope, points, and interest-only holding costs.
Navigating Hard Money Financing for Fix-and-Flip Real Estate
Hard money loans are asset-based short-term bridge financing used by real estate investors to acquire and rehabilitate distressed properties quickly. Because traditional banks refuse to lend on properties requiring substantial repairs, hard money lenders fund up to 85% to 90% of total project costs based on the After-Repair Value (ARV), charging higher interest rates and origination points in exchange for speed and underwriting flexibility.
Key Investment & Financing Features
Dual LTC & ARV Limit Engine
Sizes loan amounts against both Loan-to-Cost (LTC, up to 90%) and Loan-to-ARV caps (up to 70-75%) to protect borrower leverage.
Origination Points & Fee Modeling
Computes upfront lender points (1% to 4%) and lender processing charges deducted at closing.
Monthly Interest-Only Holding Schedule
Projects recurring monthly carrying costs during the active renovation and marketing period.
All-In Cash to Close Calculator
Calculates exact borrower cash required at the closing table (down payment equity plus upfront points).
Net Investor Flip Profit Forecast
Deducts financing costs and closing fees from projected ARV sale proceeds to estimate true Net Profit and ROIC.
Private Lending Deck Summary
One-click export ready to present to private money partners, equity syndicators, and hard money brokers.
Practical Real Estate Scenarios
- ✓Residential Fix-and-Flip Investors
Evaluate MLS and off-market wholesale deals to verify if profit margins satisfy the 70% rule.
- ✓Real Estate Wholesalers
Provide turnkey hard money financing estimates to prospective end-buyer cash investors.
- ✓Private Debt Funds & Lenders
Size bridge loan term sheets and calculate debt yield coverage on distressed properties.
- ✓BRRRR Method Operators
Model initial acquisition and renovation holding costs prior to permanent cash-out refinancing.
Frequently Asked Questions
What is a hard money loan?
A hard money loan is a short-term, asset-based loan backed by real estate. Unlike conventional mortgages that evaluate personal debt-to-income (DTI) and tax returns, hard money lenders evaluate the viability of the property and its After-Repair Value (ARV).
What are typical interest rates and points for hard money?
Hard money interest rates typically range from 10% to 14% APR (interest-only), accompanied by 1.5 to 3 origination points (1 point = 1% of the loan amount). Loans typically have terms of 6 to 18 months.
What is the difference between LTC and LTV?
LTC (Loan-to-Cost) measures the loan amount against total project acquisition plus rehab costs. LTV (Loan-to-Value) measures the loan against the final appraised After-Repair Value (ARV). Most lenders require deals to satisfy both thresholds.
How do rehab escrow draws work?
Hard money lenders do not release the entire renovation budget upfront. Instead, funds are held in an escrow draw facility and reimbursed to the borrower in stages as work milestones (framing, plumbing, finishes) are completed and inspected.
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