Hard Money Lending Guides
How private lenders size, price and quote short-term real estate loans, with worked numbers from the same engine as the calculators. Outside facts are attributed and dated.
Sizing and leverage
How much a lender will lend, which limit sets it, and how the loan splits at closing.
Interest and pricing
What the loan earns and costs: day count, reserves, minimum interest and the lender's gross revenue.
- Actual/360 vs Actual/365What the day count does to interest on a short-term loan, in dollars.
- Interest Reserves on Hard Money LoansHow a reserve is sized, withheld at closing and treated in cash to close.
- Minimum Interest, Exit Fees and PrepaymentHow minimum interest works and how it differs from other payoff charges.
- How Much Hard Money Lenders MakePoints, fees and interest on one loan, and why gross revenue isn't profit.
Quotes and underwriting
From a sized deal to a preliminary quote, and the cash the borrower needs at closing.
Market data
Published rates, points and leverage limits, each attributed to a named source and date.
Definitions and formulas
The glossary defines every term the guides use, including the ones lenders use in different ways, such as "LTV" and "Dutch interest". The exact formulas and rounding rules are on the methodology page, and the calculators let you run any example with your own numbers.