Advice Needed: HML vs. Business Loan or Credit for Fix & Flip Projects

Rehabbing & House Flipping
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Advice Needed: HML vs. Business Loan or Credit for Fix & Flip Projects

Shayan Sameer
Member since 2024 · 63 posts · 39 votes

Hi everyone,

I have a question for all the fix-and-flip investors here. I've done a couple of fix-and-flip projects in the past using a hard money lender (HML), which has its pros and cons.

I'm currently looking at a couple more properties and trying to decide if I should go with an HML again or explore other financing options. I do have an LLC with good credit, so I'm wondering:

  • Would it be worth pursuing a business loan to save on HML interest rates and fees?
  • Or, would using a 0% business credit card for the rehab costs be a better option?

I’d love to hear your thoughts, experiences, or recommendations. 

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  • Shayan Sameer
    OP
    Member since 2024 · 63 posts · 39 votes
    1y

    @Joshua Randall will ping you shortly. 

    0Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    1y

    I would reach out to a couple lenders see if you can get some competitive rates and also see about the points too that they are charging.. The other thing that I would look at is private money too you can get it for cheaper and less pricy as they can make their own terms with their money. 

    The McKernan Group4.957 Reviews
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  • Jeffrey BlackmanPro Member
    Lender · Chicago, IL · Member since 2017 · 107 posts · 34 votes
    1y

    Hi @Shayan Sameer, I'm an investor and licensed mortgage broker. These questions come to mind for me: Is your credit card limit large enough to fund the purchases and rehabs you are considering? Will all of your vendors take a credit card as payment? Will the interest rate remain 0% until you sell the flips?

    Since you are experienced with HMLs, you know their strengths and weaknesses. We offer a ton of different fix-and-flip programs including putting 10% down on the purchase price and funding 100% of the rehab. We also have programs that can close in 3 days or less if you need speed. Our loan minimum is $75,000 and we go up to $10 million. We can also lend to both individuals and LLCs.

    I'd be happy to share my experience as both an investor and as a lender. Feel free to contact or DM me. 

    Good luck with your deals and let me know if you think I can be helpful.

    Jeff

    0Reply
  • Shayan Sameer
    OP
    Member since 2024 · 63 posts · 39 votes
    1y
    Quote from @Jeffrey Blackman:

    Hi @Shayan Sameer, I'm an investor and licensed mortgage broker. These questions come to mind for me: Is your credit card limit large enough to fund the purchases and rehabs you are considering? Will all of your vendors take a credit card as payment? Will the interest rate remain 0% until you sell the flips?

    Since you are experienced with HMLs, you know their strengths and weaknesses. We offer a ton of different fix-and-flip programs including putting 10% down on the purchase price and funding 100% of the rehab. We also have programs that can close in 3 days or less if you need speed. Our loan minimum is $75,000 and we go up to $10 million. We can also lend to both individuals and LLCs.

    I'd be happy to share my experience as both an investor and as a lender. Feel free to contact or DM me. 

    Good luck with your deals and let me know if you think I can be helpful.

    Jeff


     Thanks, Jeff.  Will ping you shortly. 

    0Reply
  • Gene K.
    Investor · Bergen, NJ · Member since 2011 · 21 posts · 6 votes
    1y

    Hey Shayan. Business loans typically won't let you purchase a property if you read the fine print. Even if they do, they also may not let you borrow enough to purchase and renovate a property. Credit cards have the same limitation on the amount you can borrow and will likely end up costing more than private lenders. I'd recommend a private lender since you have an LLC and good credit. There are plenty out there with fair rates and lower fees. Good luck!

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    20h

    None of these sound like a solid alternative to private money. I would suggest shopping the quote around to ensure you are getting the best deal.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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