I am looking for an advice from more experienced investors. I am ready to invest and I am contemplating two options:
1-Repackage my mortgage and get a lump sum of money in the form of a new mortgage (existing one + enough cash to invest) for a higher interest rate (between 6.5%-7.5%)...second mortgage not doable (e.g. HELOC type)
- Cons-I will loose the 4.37% interest mortgage that I currently have and forced to pay higher mortgage
- Pros -Total control of the funds
2-Use private lenders/hard money lenders for 12% interest and some points as needed
- Cons-Might be difficult to secure a loan
- Pros-Use these types of loans as needed
Has anyone been through these thoughts?
Have you shopped around on that interest rate of 6.5% to 7.5%?
What concerns do you have when using hard money in regards to being able to secure the loan? They are generally more flexible than the bank and it sounds like you will have cash to invest.
Feel free to connect if you would like to discuss further.