Hit a $50k bridge loan closing today that I almost walked away from

I was ready to back out of this deal in Dallas because the interest rate seemed too high at 12%. But my accountant ran the numbers and showed me the annualized return would be 18% if the developer pays off in 8 months like they promised. That specific math changed my whole mindset about short-term hard money. Has anyone else had a deal surprise them after you ran the real numbers?

2 comments

2 Comments

fiona_young15d ago

Used to hate the idea of hard money loans honestly. But seeing the math on a short-term flip totally changed my perspective when the numbers actually worked.

nathanj5615d ago

You said "when the numbers actually worked" which is the part that always makes me pause. What kind of numbers are we talking about here? Like what was the spread between your purchase price and ARV that made you feel comfortable with that 12-15% hard money rate?