Private Money / Hard Money vs. Conventional Financing
Private Money / Hard Money is definitely better than conventional because of speed and ease of obtaining the credit. Sure it might cost you some money, but there is a cost of doing business with any business. Usually on flips you need to move fast and conventional is just too slow and unpredictable.
The man objective is to close. If you have a deal where you’re going to profit something like $50,000 - $100,000 on and you lose it because you couldn’t close your conventional deal, then that costs you $50,000 - $100,000. That you cant afford. Private money / Hard money might cost you a little more than conventional but in the long run you can leverage more of your cash and you will close more deals by utilizing safe reliable funding.
My vote is Private Money / Hard Money all week long and twice on Sunday.
Thoughts?
