How to Call a Hard Money Lender — What to Ask, What to Say

TL;DR

• The first call is 8 minutes. Your job is to quickly extract rate, points, term, max LTV, max LTC, draw schedule, exit, and prepay.
• Never start with "what are your rates?" — lead with the deal specifics. Rates without context are useless.
• Points are front-loaded and compound your cost — a "lower rate" with 1 extra point often costs more over a 7-month hold.
• Have a clean deal summary sheet ready before you dial. Lenders who hear one sound bite more serious than the other 95% of callers.

Most investors make their first hard money call sounding like a homeowner refinancing a primary. They ramble, they ask for "the rate," and they do not know the difference between LTV and LTC. Ten minutes later the lender has pegged them as amateur and either quoted them the worst terms or politely never called back. Here is how to sound like the 5% who get terms called back with confidence.

Before you dial: what to have ready

Write a one-page deal summary (even if informal, on a notepad) with:

• Property address (or "rough area, price band, SFR 3/2")
• Purchase price: $X
• ARV: $Y (with 2 comps at the ready)
• Rehab scope: cosmetic / medium / gut + $Z
• Timeline: Z months
• Your experience: how many flips completed / BRRRRs / doors owned
• Your credit score range
• Your liquid cash position (for down payment + reserves)
• Exit: resale, refi, DSCR rental

If you cannot produce this in 60 seconds, you are not ready to call.

The first-call script

Cold call opening (30 seconds):

"Hi [Name], this is [You]. I am an investor in [metro], I have done [X] flips and currently have [Y] in pipeline. I have a property I am closing on at [address or zip]: purchase $[X], ARV $[Y], rehab $[Z], 6-month flip. I am shopping 2 or 3 lenders this week. Can I walk you through the deal in 5 minutes and get your terms?"

That opening tells the lender:

• You are experienced (or at minimum coachable and honest)
• You have a specific deal, not a fishing call
• You are comparing lenders (pricing pressure)
• You respect their time

Expect one of:

• "Sounds good, tell me about it." → Proceed.
• "We don't lend in [area]." → Thank them, move on.
• "What's your credit score?" → Answer straight, then pivot to the deal.

The 8 questions every investor must ask

1. What is your max LTC and LTV?

• LTC (loan-to-cost): % of purchase + rehab they will finance.
• LTV (loan-to-value): % of ARV they will finance.

Most lenders cap at 85–90% LTC AND 65–75% LTV — whichever is lower controls. A great deal on LTV is irrelevant if LTC caps you at 85%.

2. What is the rate?

Expect 9.5–13% in 2026 for experienced flippers with good credit. First-time flippers pay +1–2%.

3. How many points?

Front-loaded. Standard is 1.5–3. On a $200K loan, the difference between 1.5 and 3 points is $3,000 at close — often more than 2 months of interest.

4. What is the term?

Most are 6 or 12 months. Ask about extensions: cost, how many, how many months each. A 6-month loan with two free 3-month extensions beats a "12-month" that requires refinancing to extend.

5. What is the draw schedule?

Rehab is advanced in draws against inspections. Ask:

• How many draws allowed?
• Inspection cost per draw?
• How long from request to funding? (3 days is good. 10+ is a red flag.)
• Minimum draw size?

A slow draw process stalls your project and adds holding costs.

6. Is there a prepay penalty?

Most 2026 hard money has no prepay penalty but some charge minimum interest (3 months guaranteed). If you flip in 90 days, you still pay 3 months interest. Know this up front.

7. What is the default rate and fees?

Life happens. If you hit a rough spot, what is the default rate (often 18–24%)? Are there default fees on top? Is there a grace period?

8. What is your exit requirement?

Some lenders want to see a takeout loan pre-approved if you are BRRRRing. Some want proof of listing within 4 months if flipping. Know before you close.

The math of points vs rate

Lender A: 10.5%, 2 points Lender B: 11.5%, 1 point

$200K loan, 7-month hold:

Lender B wins by $833. Always compute total cost to exit, not rate.

Now if your hold becomes 12 months (BRRRR with slow refi):

Tie. At longer holds, the rate matters more; at shorter holds, points matter more. Know your timeline before you pick.

What the lender is evaluating on that call

They are not evaluating your deal in the first 8 minutes. They are evaluating you:

• Do you know your numbers cold?
• Do you have realistic ARV and rehab?
• Have you done this before, or at minimum done the homework?
• Are you a person they want to call at 5 PM when a wire is held up?

Investors who sound organized on the first call get better terms, faster closes, and more flexibility when the inevitable hiccup happens.

After the call: compare on one page

Call 3–5 lenders on the same week. Put their quotes side by side on a single sheet:

Pick the one that minimizes total cost at your realistic timeline, not the one with the lowest headline number. For context on realistic timelines, see The Real Holding Costs of a Flip.

Bring your deal fully specced

Your lender call goes 10x faster when you arrive with purchase, ARV, comp-driven reasoning, and a line-item rehab scope. Vricko's Deal Wizard produces a one-page deal summary with ARV comps, rehab breakdown, and a scripted action plan including hard money lender outreach — exactly the document your lender wants to see before quoting.

Generate your deal summary in the Deal Wizard and call your next lender sounding like you have been doing this for 10 years.