What fees are involved in hard money lending?

Hard Money Lenders and Private Equity Lenders charge a loan fee which equals to a % of the gross amount of the loan as well as their administrative and underwriting fees. You have to watch for hidden fees, always ask for a rate sheet. Know all fees going in to your relationship with a hard money lender, so there are no surprises later for you.

Can you use proceeds from a hard money loan to pay the fees?

Yes, if there is enough equity in the project, you can pay hard money loan fees with proceeds from the loan. This is frequently the case when working with a hard money lender.