Private Money Loan, is this a good thing or bad thing?

Question

I have been looking into this. It seems like a legitimate way to get funding for real estate investing. Has anyone had experience with this?

Chris Seveney · Answer

@Christophe Madell

Is it legitimate - yes BUT be very careful as 95% of those you find online “offfering” private money are scams and want an upfront payment from you.

If they use gmail, yahoo, aol etc for an email and do not have their own business domain - run away

Kenneth Garrett · Answer

@Christophe Madell

I’ve used private lending for years for my flips and BRRRR projects. It’s a great way to fund projects without using your own capital. I’ve never used HML so I can’t speak on that. After my first BRRRR project, I was able to get 100% funding for purchase and rehab. Real estate has been good to me.

Jonathan Taylor · Answer

I have a good deal of experience with HM. Short answer, it depends. HM is a tool used for some deals and not others. Pros and cons. Pros: Fast closing, minimal documentation and analysis, and can be used on unbankable properties (deferred maintenence, tax liens, cloud on title, etc). Cons: expensive, high interest, short loan periods, and riskier.

Private Money Loan, is this a good thing or bad thing?

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