What would you do with 100k @ 9%, no points?

Question

Martin Potter · Answer

@Rohan J.

Private money can be excellent for an investor with no money and bad credit. I use this strategy all the time and it has allowed me to do 5 no money out-of-pocket deals over the last year and a half. I recommend getting further educated on private money and raising private capital to receive the full benefits of private capital. Let me know if I can help you with any other questions about this topic. Good Luck!

John Thedford · Answer

It depends on your return. If you need the money and the investment will yield a good return, it might be worth it. I do a lot of HML but primarily to flippers. I usually tell new investors that don't know better that doing buy and hold at high rates generally is not going to be profitable. However, if you can make a purchase substantially under market that 9% may be worth it for a short period of time.

Lee Ripma · Answer

I agree, short term money only, not more than 6-12 months. But I'd take this deal over and over to get into more and more properties.

Lee Ripma · Answer

@Rohan J.

I'd take that any day. If you can't refi you can sell.

Account Closed · Answer

I wouldn't touch it with a 10 foot pole.  I can get $100k at 4.5% from a local bank with 30 year terms.  Why would I want private money at twice the price?

Barry H. · Answer

LEE - I am a HML and am lending in KC for those exact rates to Buy n Hold Rental Investors.  They are still turning 10% ROIs even with debt service to me.  I agree with others who are telling you it is better using HM for Flips, but in a solid rental market (Indy, KC, PHX), it can really help you build up an inventory.

Will Pritchett · Answer

I have used pm to make cash offers then refinance out. I find my offers are stronger as cash. Also good for houses that won't qualify for conventional loans. Definitely not to keep the loan long term. Fix up and refinance.

Good luck!

Rohan J. · Answer

thanks guys. looks like i need to do a bit more research before accepting the funds.

What would you do with 100k @ 9%, no points?

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