Personal Line of Credit vs Hard Money

[Darren James]

Hard money costs a lot for a newbie investor. I know that there’s lots of benefits like fast cash, doesn’t show on personal credit, etc. BP, if you had access to a personal revolving line of credit of 100k at 12-15%, would you still use a hard money lender that charges 2-3 points plus app fees ($750) at 10-12%?

[Tom S.]

@Darren James I would definitely use the line of credit over HML, for the above scenario. Obviously the no points and fees is a big plus. Also HML is still a loan that needs to be approved, and it can still fall through for various reasons.

Also if I used a line of credit, I would do it as a HELOC, so the rates would be at least half of what you mentioned. 15% is pretty high. 5-6% can certainly be achieved.