Hard Money Lenders

[Rita Bock]

Hi BP,

Me and my husband have been really thinking about all the different ways we could finance our first flip and its more and more looking like we will have to do a hard money lender or private lender. Every time I hear about HML it sounds almost like a bad route. I feel real nervous having to resort to one. Any advice or things to look out for if we go the HML route? Also with a HML do we still have to put a percentage down, or does it vary depending on the lender we go with? I appreciate the feedback.

[Joe Homs]

@Rita Bock HML's come in all shapes and sizes from 30% down to NO down, depending on deal. Like I tell all my investors, look at your bottom line and if it makes sense to do the deal that way, then do it! I can tell you that about 30-50% of your profit will go to the HML.

Good investing...