Hard or private money lenders..
What’s everyone’s take on hard or private money lenders use to start? Is it a good idea for some one who doesn’t have much money to start?
Is it more useful for fix and flips or cash flow properties? What do I do about such a high interest rate of I’m holding the property for cash flow long term?
Most Popular Reply
The high interest rate isn't important. What is important is how good is the deal and will it cover the high interest rate. If you are buying rentals with hard money the idea is you fix them up to increase the value then refinance with a more traditional lender at lower rates.
Hard money tend to be better for fix and flip.
Private money is different than hard money. Hard money lenders are professional lenders. Private lenders lend to you because they know and trust you. Private lenders are generally much less expensive and more flexible than hard money lenders. However the hard part is finding someone who will trust you just starting out.
Hard money tend to be better for fix and flip.
Private money is different than hard money. Hard money lenders are professional lenders. Private lenders lend to you because they know and trust you. Private lenders are generally much less expensive and more flexible than hard money lenders. However the hard part is finding someone who will trust you just starting out.