Hard money lenders positives/negatives?

[Shane Sigman]

What’s the positives and negatives of using hard money lenders?

[Caleb Jordan]

Originally posted by @Shane Sigman:

What’s the positives and negatives of using hard money lenders?

 Positive:higher rio not using your own money.

Fast close.

More flexible underwriting less restrictions.

Can lend on distressed property.

usually you can finance rehab costs plus purchase.

Can have Higher ltv on non owner occupied than many other options.

Experienced in financing flips and invesment properties, can help advise and double check a deal.

Negative

Higher cost.

Can only lend to LLC

Can not do owner occupied

Usually only first position lien.

Some risk of financing falling through as opposed to all cash.

Draw process on rehab. Changes to rehab will probably have to be approved by HML