Real Estate Professional · San Francisco, CA · Member since 2016 · 22 posts · 8 votes
Hey BP!
Just wanted to learn a bit more about private lending firms. What are the advantages and disadvantages for going with this financing route? Which niches do you think best align with using private money lenders? (flipping, buy and hold, etc) Really any information you have would be appreciated.
Lender · Hot Springs Village, AR · Member since 2014 · 274 posts · 92 votes
10y
Zach, Buy for cash if you can or get a loan from a bank if you want to leverage. If these options are not available look into private money. There are a number of terms in a loan that are negotiable. Do you want the lowest possible interest rate or the lowest possible closing costs? Can you handle a balloon after a year, 2years....? Do you want to amortize the loan or pay interest only? Decide what works best for your situation and seek the loan that best fits.