Fix and Flip with Hard Money

[Jacob Smith]

My business partner and I are looking to get into our first fix and flip. We don't have the cash to buy and rehab the property ourselves so we're considering using hard money. We are located in the Twin Cites area and are wondering if this is a viable plan given how expensive it is to use HM. Please let me know your thoughts and or experiences with this technique.

[Mike Terry]

I used to think hard money was expensive also.  When I was starting out I remember thinking I would never pay 10 to 15% for a loan.  Because the term you are keeping the loan for, hopefully less than 6 months... Hard money is pretty cheap money.  If you factor the interest into your budget as an additional expense then it is just that an expense, another partner in the deal.  Most likely you can't do the deal without it.  I have totally changed my attitude about hard money after 7 flips and using it 3 times.  Each flip was profitable for me.  So I was happy.  Best of luck.