By Beau Eckstein

March 24, 2023

If you're a real estate investor looking to finance your fix-and-flip project, it can be challenging to find the right hard money lender. With so many lenders offering different rates and terms, it can be overwhelming to navigate the market. In this post, we will discuss how to find the best option for your property and explain the rates and terms of hard money loans.

The Importance of a Track Record and Credit Score

Before you start looking for a hard money lender, it's important to establish an experienced track record in real estate investing. A track record is the number of flips or rental properties you have owned in the past two years. Lenders are more likely to offer the best terms to borrowers who have established experience in the field. Additionally, lenders will consider your credit score when assessing your eligibility for a loan. A good credit score can lead to better rates and terms.

Hard Money Loan Rates and Terms

The rates and terms of hard money loans can vary depending on the lender. However, if you have good credit and a track record, you can expect to pay between 1% to 2% in interest rates, with an average of 9% to 10.5%. However, these rates fluctuate daily depending on the market, and it's crucial to shop around for the best terms. Hard money lenders also charge points, which are fees charged upfront as a percentage of the loan amount. The number of points can vary from lender to lender, but they typically range from 2% to 5% of the loan amount.

National Lenders vs. Local Lenders

There are two types of hard money lenders: national lenders and local lenders. National lenders are large groups that lend nationally, while local lenders lend within their geographic area. Local lenders typically offer faster loan processing times and require less diligence, but their rates and terms may not be as competitive as those of national lenders. National lenders, on the other hand, have hundreds of millions of dollars in funding and can offer more competitive rates and terms.

Factors to Consider When Choosing a Hard Money Lender

When choosing a hard money lender, there are several factors to consider. First, you should consider the term of the loan. Some lenders offer six-month terms, while others offer twelve-month terms. It's generally better to choose a longer term to avoid extension fees if your project takes longer than expected.

Next, consider the type of interest you will pay on the loan. Some lenders charge interest on the entire loan amount, while others charge interest on what's disbursed. It's also essential to consider the points and fees that come with the loan, such as appraisal fees and property inspection fees.


In conclusion, finding the right hard money lender for your fix-and-flip project requires research and due diligence. Consider your track record, credit score, and the rates and terms of each lender when making your decision. You can also consult with a professional like Bo, who can provide guidance and help you make the best choice for your project. With the right hard money lender, you can finance your real estate investment project and achieve success in your business.

Working with Beau Eckstein as your commercial mortgage advisor when trying to locate the best SBA financing can be beneficial because he has extensive experience and knowledge in the field. He can help navigate the complex process of obtaining SBA financing and assist in finding the best options for your specific situation.

Additionally, his established relationships with lenders can help increase the chances of getting approved for funding.

Overall, working with a knowledgeable and experienced advisor like Beau Eckstein can greatly increase the chances of successfully obtaining SBA financing.

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