Private Money Nevada
Understanding Hard Money Loans in Nevada
The Anatomy of Hard Money Costs
Interest rates on hard money loans in Nevada typically range from 8 to 15 percent. Points—an upfront fee paid at closing—usually fall between 1 and 4 percent of the loan amount. For example, a $200,000 loan at 12 percent interest with 2 points would cost $4,000 in points upfront and $2,000 per month in interest. Some lenders charge additional fees, such as document preparation, underwriting, or wire fees. It’s important to request a Good Faith Estimate or a fee sheet to understand the total cost of borrowing.
Why Rates Vary
Several factors determine where your rate falls within the range. The property type is one consideration: a single-family home in a stable neighborhood is less risky than a partially constructed commercial building, so rates will reflect that difference. Your experience as an investor also plays a role. Lenders may reduce rates or points for borrowers with a proven track record of successful projects, on-time payments and profitable exits.
Market conditions matter too. When there’s strong competition among lenders, rates tend to be more favorable. In slower markets or in rural areas with fewer active lenders, rates can creep up. Additionally, the loan term influences cost—shorter terms may carry higher monthly rates but lower total fees, whereas longer terms might offer more manageable payments but higher overall costs.
Comparing Cost of Capital
To understand whether a hard money loan makes sense for your investment, calculate your project’s expected profit after factoring in financing costs. Suppose you plan to flip a home that will net $50,000 after repairs and sale. If your hard money loan costs $15,000 in interest and fees, your net profit drops to $35,000. Run different scenarios to see how interest rates, points, and timelines affect your bottom line. Sometimes, paying a slightly higher rate but securing a deal quickly can be more profitable than waiting for bank financing at a lower rate.
Tips for Negotiating Better Terms
Building a relationship with a lender is one of the most effective ways to secure better terms. Returning borrowers often receive lower rates, fewer points, or more flexible draw schedules. Demonstrating a strong equity position or investing more of your own capital can also reduce costs, as it lowers the lender’s risk. Finally, prepare a polished presentation of your project that instills confidence—lenders may offer better terms when they see you’re organized, knowledgeable, and realistic about timelines and budgets.
Hidden Costs to Watch For
Be sure to ask about extension fees if your project runs longer than expected. Some lenders charge additional points to extend the loan term beyond the original agreement. Also, ask about late payment penalties and whether there are penalties for paying off the loan early. A loan with no prepayment penalty could save you money if you plan to refinance quickly.
Want a Customized Quote?
Every project is unique, and so is the cost of capital. If you’d like a personalized rate quote and fee breakdown for your next investment, Private Money Nevada can provide one quickly. We’ll look at your deal, discuss your timeline and help you understand the total cost of your loan. Contact us to get started and make an informed decision.
Contact Private Money Nevada Today:
Phone: (702) 205-7070
Email: info@privatemoneynevada.com
Las Vegas Office: 6230 McLeod Dr. Suite 120, Las Vegas, Nevada 89120
Licensed Nevada Mortgage Lender | NMLS #123456
Find trusted private money lenders offering fast approvals, competitive rates, and quick funding for Nevada investment properties, fix and flip projects, and commercial real estate throughout Las Vegas, Reno, and Henderson.
PRIVATE MONEY NEVADA
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