What is hard money and when should I use it for flipping?
Use it when the deal cannot wait or cannot qualify. Three situations: the property is uninhabitable, so no conventional or DSCR lender will fund it; you need to close in days rather than weeks to win the contract; or the rehab exceeds the cash you have, and the lender will advance draws against it. Because hard money is priced by the month, its true cost is the rate times the months you hold it, plus the points. Hold it for as few days as you can, and line up the exit financing before you take it.