It’s built on real numbers, not a generic rate range. Larry’s standard rate is 12.99%, interest-only, with 2 points on a 6-month loan and 3 points on a 12-month loan. If you’re comparing lenders, run the same deal through every one of them and compare the totals, not the rates.
Estimated cost
- Rate
- 12.99%, interest-only
- Monthly interest
- $2,165.00
- Points (2)
- $4,000.00
- Interest for 6 months
- $12,990.00
- Full-term cost if held all 6 months
- $16,990.00
This is an estimate, not a loan offer or a guarantee of terms. Your actual loan amount and terms depend on the property, Larry's valuation, and your borrower profile. Totals assume the full loan is funded at closing and don't include third-party closing costs like title and recording.
What you'll need to fill it in
The last box matters most. It asks how many months you expect to hold the loan, and that’s where the real cost shows up, because there’s no prepayment penalty and you only pay interest for the months you use. Be honest with that number. A flip you hope to finish in four months but usually finish in seven should go in as seven.
What the calculator assumes
It also assumes the whole loan is funded on day one. Larry charges interest only on money you’ve drawn, so if you take funds in stages your real interest will come in lower than what you see here.
How the numbers are worked out
Monthly interest = loan amount x 12.99% / 12
Points = loan amount x 2% on a 6-month term, or x 3% on a 12-month term
Total cost = points + (monthly interest x months you hold the loan)
That’s the whole engine. Nothing is hidden in a formula you can’t check with a phone calculator.
How much you can borrow, and what you'll bring
For a first-time borrower, loans typically run 70% to 80% of that value. Repeat borrowers, prime properties, and borrowers with good credit can go higher. Raw land usually sits at 40% to 50%.
So on a property Larry values at $250,000, a first-time borrower is usually looking at a loan of $175,000 to $200,000. If you’re buying at that price, plan on bringing $50,000 to $75,000 of your own money, plus closing costs. The calculator flags any loan amount above 80% of the value you entered so you don’t build a deal around money that likely isn’t there.
What the calculator doesn't show
And it’s an estimate, not a guarantee. The final numbers come from Larry once he’s looked at the property.
It also won’t tell you whether a deal is a good deal. It tells you what the money costs. Whether the numbers work after that is your call.
Two examples
At $400,000, interest is $4,330 a month. The full 6-month term costs $33,980 and the full 12-month term costs $63,960. Now say you pay that $400,000 loan off after four months. On the 6-month term you’ve spent $25,320. On the 12-month term it’s $29,320, and the only reason for the $4,000 gap is the extra point.
