Hard Money Loan Calculator
A hard money loan calculator helps real estate investors and borrowers determine the costs and payment schedules for hard money financing. Calculate monthly payments, interest costs, and total financing expenses for bridge loans, fix-and-flip projects, and short-term real estate investments.
Hard Money Loan Calculator
Use this calculator for hard money financing, bridge loans, and fix-and-flip loan calculations.
Results:
| Monthly Payment | $2,290.00 |
| Total Interest | $27,480.00 |
| Origination Fee (Points) | $7,500.00 |
| Total Loan Cost | $284,980.00 |
| Loan-to-Value Ratio | 71.4% |
| Total Project Cost | $302,500.00 |
| Break-Even Sale Price | $332,775.00 |
| Potential Profit | $17,225.00 |
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| View Payment Schedule | |
Hard Money vs Traditional Loan Comparison
Compare hard money loans with traditional financing to understand the cost differences and benefits.
Results:
| Hard Money Total Cost | $34,980.00 |
| Traditional Total Cost | $8,750.00 |
| Cost Difference | $26,230.00 |
| Hard Money Speed Advantage | 45 days faster |
| Time Value of Money | $25,000.00 |
| Net Financial Impact | -$1,230.00 |
| Recommendation | Hard Money |
| Break-Even Timeline | 4 months |
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| View Comparison Analysis | |
Fix and Flip Investment Analysis
Analyze the profitability and return on investment for fix-and-flip real estate projects using hard money financing.
Results:
| Total Investment | $229,500.00 |
| Net Sale Proceeds | $257,600.00 |
| Net Profit | $28,100.00 |
| Return on Investment | 12.2% |
| Annualized ROI | 24.4% |
| Total Interest Cost | $10,800.00 |
| Total Selling Costs | $22,400.00 |
| Break-Even ARV | $251,900.00 |
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| View Investment Analysis | |
Understanding Hard Money Loans
Hard money loans provide fast, asset-based financing for real estate investments and time-sensitive transactions. Understanding hard money loan terms, costs, and strategies helps make informed decisions about short-term real estate financing.
| Loan Type | Interest Rate | Term Length | LTV Ratio | Best For |
|---|---|---|---|---|
| Fix and Flip | 10-15% | 6-18 months | 70-80% | Property renovation |
| Bridge Loan | 8-12% | 6-24 months | 75-85% | Property transition |
| Rental Property | 9-13% | 12-36 months | 70-75% | Investment property |
| Construction | 11-16% | 12-24 months | 65-75% | New construction |
Hard Money vs Traditional Financing
Understanding the differences between hard money and traditional financing helps choose the right option.
Financing Comparison
| Factor | Hard Money | Traditional | Advantage |
|---|---|---|---|
| Approval Speed | 3-7 days | 30-60 days | Hard Money |
| Interest Rate | 10-15% | 6-8% | Traditional |
| Down Payment | 20-30% | 10-25% | Traditional |
| Credit Requirements | Flexible | Strict | Hard Money |
| Documentation | Minimal | Extensive | Hard Money |
| Total Cost | Higher | Lower | Traditional |
Hard Money Loan Costs
Understanding all costs associated with hard money loans helps in accurate project budgeting.
Typical Cost Structure
| Cost Type | Typical Range | Description | When Paid |
|---|---|---|---|
| Interest Rate | 10-15% annually | Monthly interest payments | Monthly |
| Origination Points | 2-5 points | Upfront fee (% of loan) | At closing |
| Processing Fee | $500-$2,000 | Application processing | At application |
| Appraisal | $400-$800 | Property valuation | During approval |
Hard Money Loan Benefits
Hard money loans provide unique advantages for real estate investors and time-sensitive transactions.
Key Benefits
- Speed: Fast approval and funding (3-7 days typical)
- Flexibility: Asset-based lending with flexible terms
- Credit Tolerance: Less emphasis on credit score
- Cash Equivalent: Compete with cash buyers
- Short-Term Focus: Ideal for quick turnaround projects
- Experience Valued: Lenders value real estate experience