💰 CAPITAL STACK BREAKDOWN — Hard Money: Real Math

Before you dismiss hard money as "too expensive," run the actual numbers.

--- Sample deal: - Loan amount: $200,000 - Points: 4% = $8,000 upfront - Rate: 14% APR - Term: 6 months - Interest: $200,000 × 14% ÷ 2 = $14,000 - Total financing cost: $22,000

--- Now run it against a deal: - Purchase price: $140,000 - Rehab: $55,000 - Total in: $195,000 - ARV: $230,000 - Equity created: $35,000+ (pre-refi) - Hard money cost: $22,000 - Net position: Still positive — and you close in 2 weeks, not 60 days ---

When hard money makes sense:

✅ Deal has built-in equity (ARV significantly above total cost)

✅ Speed of close is a competitive advantage

✅ BRRRR — you plan to refi out and recycle the capital

✅ Fix and flip with strong exit margin

When it doesn't:

❌ Deal has thin margins that hard money cost will eliminate

❌ Rehab timeline extends beyond the loan term ❌ You don't have a clear exit strategy before you borrow

--- Partner: Anthony Machi — Mach1 Lending. Hard money built for investor timelines. Reference him when you're ready to run your capital stack.

Beast Mode Assignment: Take a deal you've been analyzing. Run the hard money cost against the equity created.

Does it still pencil? Post your numbers below.

🎙️ Wednesday 7PM — Beast Council Podcast: meet.google.com/qud-eaze-frv