Updated almost 11 years ago on . Most recent reply
exit strategies
Whats the best exit strategy for a hard money loan? I hear people talk about refi's but if you pay one loan and aquire another where's the possitive cash flow? I really don't understand. Could someone explain?
Most Popular Reply
@Ronnie Neal generally, Hard Money lenders charge much higher interest rates for much shorter terms. For example, a hard money guy may give you terms of 12 months at 15%. Ouch, but if you rehab the home, get it rented for several months, then refi into a conventional 30 year fixed mortgage, your interest rate will be much lower and cash flow will increase.