Chasing Financial Freedom

That $500 closing cost estimate just became $3,000 and nobody warned you it was coming.

Prepaid interest, homeowner's insurance, property taxes, and escrow funding can stack up to thousands of dollars at closing depending on your deal size, your closing date, and where you are in the property tax cycle.

Did your broker walk you through every line of your closing costs before you got to the table or did the numbers surprise you?

Drop your answer below.

More tools and straight talk at trutalk.co

Your hard money lender is not on your side. They are on theirs.
That is not a criticism. That is just the truth nobody says out loud.
Here is what that looks like in real numbers. Most hard money lenders will not go past 60% to 70% ARV. That ceiling exists to protect them. Not you. Because they know closing costs and exit gaps eat into that number fast. And if your deal goes sideways, they are covered. You are not.
Now add this. Appraisers look at investment properties differently than primary residences. That $400,000 ARV you stress tested your deal against. It may not be $400,000 when the appraiser is done with it.
Guys, did you know that going in?
Most investors do not. And that gap between what they assumed and what the appraiser delivered is exactly where deals fall apart.
Not every lender has the same ARV ceiling. Not every lender requires three to six months of seasoning before you roll out of hard money. There are options most brokers never tell you exist.
You stress-tested your deal. Have you stress-tested your lender?