noob: HML questions

hey, hows it going i want to get into rei and want to try and flip my first house sometime within the next 1.5 years. so i’m trying to learn as much as i can between now and when i decide to try it. i was looking at some websites of hardmoney lenders and was wondering. what is “PAR pricing - (this includes broker and processing fees).”

generally who pays for the closing costs, is that figured into hm loan or does flipper have to pay out of pocket?

is it common for the hml to pay for renovations? and if yes when do you get the money for the materials & labor?

for a first time flipper, is hml a good way to go or not?

If anyone, hopefully somone with experience, can answer these questions, i’d really appreciate it, thanks.

Hi there,

Par pricing means that the broker/lender is not marking up the rate to make extra commission (YSP) on the back.

Flipper normally pays out of pocjket or splits with seller.

It is not common for HML to loan for repairs. If you want this you are looking for a specialized HML loan - a rehab loan that will loan on the repaired value (ARV). You will get the money in draws as work is completed and verified by the lender against your repair budget and schedule.

Good Luck!


thanks for the info. is getting hml for rehab, generally easy or not? what about credit scores and such?