hard money loan or private lender

[Talha Makki]

Hello everyone, I'm new to real estate investing and doing my research on all the financing that is available. I've read articles where people get hard money loan or private investor to invest in there deal without putting 20 percent down. They typically put more like 10 percent down. What is the minimum down payment does HML or private investor asks for? And does credit matter?

[Anthony Dooley]

Traditional bank loans are the cheapest way to fund a deal. If you cannot qualify, you should invest in yourself and improve your financial situation.  Hard money loans are typically short term (6 - 12 months) with high interest and none offer 100% financing that I have ever heard of.  If you have a relative that will loan you the money or become a partner for 50% of the profit, that is your best source of private money. If you have a bad track record with money, borrowing more will only make your problems bigger.