@Khanittha Krajangjaem your blessed to be in the best market in the US to borrow from HML CA rates are by far the cheapest in the country.. .10% apr or less.
I know I get the best terms possible from my commercial banks at 7 to 7.5% apr.. so CA HM rates are just a tiny bit above that.. and frankly if the deal can't support a tad higher interest then its a deal you should not do anyway.
50% of deal is better than 100% of no deal. If that's the way to get you going. Why not . Hard money lender is specifically for fix and flip in my opinion.
You gotta know your market and know the value specifically. Give yourself enough room to not to loss. So always take the bulk part on rehab and expense and underestimate a big on ARV. Do the number's right is the key. @Jay Hinrichs As jay said. Your estimated profits should be well cover the cost of getting the loan. If not that's not even the deal you like to touch. Flipping house is dangerous. Lots of surprises. You gotta know your market. I personally like to flip 200k multi family property deals for $30k-40k net profits without the hard money loan. Cost of hard money loan is around 8k for quick turn over. But I meant. Getting that 20k is better than not doing it right ?
@Khanittha Krajangjaem I can't imagine our business being where it is without HMLs. They allow us to leverage our private money in order to do multiple deals. They are experts and they know how to evaluate LTVs and ARVs so as to keep bad deals away from newbies.
Check out 5 Arch, Civic and Patch.
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