Key Takeaways
- Transactional funding costs 1-2% for same-day double closings and requires the B-C closing to be pre-arranged.
- Hard money rates of 10-15% with 2-4 points are justified by speed (7-14 days) and asset-based underwriting.
- Private lending at 8-12% offers maximum flexibility and is built on personal relationships and trust.
- Self-directed IRA holders are a significant source of private lending capital.
- Layered financing (hard money to acquire, conventional to hold) minimizes total cost across the investment lifecycle.
This track contains subscriber-only lessons
Explore free tracks in this area of study, or subscribe for full access.
Browse available tracks"Creative Financing: Subject-To, Lease Options, Tax Liens & Private Lending" is a Pro track
Upgrade to access all lessons in this track and the entire curriculum.
Test Your Knowledge
1.What distinguishes transactional funding from hard money lending?
2.What is the typical interest rate range for private lending in real estate?
3.Why are self-directed IRA holders a significant source of private lending capital?