Skip to content
Private Lending & Conventional Mortgage Advice

User Stats

54
Posts
11
Votes
Moshe Eisenberg
  • Investor
  • Spring Valley, NY
11
Votes |
54
Posts

Hard Money or Equity Partner

Moshe Eisenberg
  • Investor
  • Spring Valley, NY
Posted Feb 22 2015, 17:30
Hi guys, I'm in contact on a rehab deal and I'm contemplating if I should go with hard money or rather with an equity partner. The basics of the deal is 100k purchase price. 25k rehab. 180 ARV. This should be aprox 45k profit before cost of capital. If I have an 50/50 equity partner I would be giving away around 22.5k. If I go with hard money and wait 6 months to sell the property it will cost around 12k (this is based on 3 points, plus 12 apr which is high). If it takes up to a year it will be around 20k. Based on the #s it looks like hard money is the better option but I'd love to hear from folks with experience what else should go into this decision. Appreciatively yours.

Loading replies...