Hard Money vs. Conventional Financing

@Siahna Im, I agree that the financing should be part of the plan before the offer goes in. One thing I’ve learned from working with investors is that the interest rate is only one part of the decision. I also look closely at the term, monthly payment, balloon date, extension options, prepayment rules, personal guarantees, and what happens if the rehab or sale takes longer than expected.

I’ve seen good properties become stressful deals because the financing did not match the actual exit plan. If someone expects to renovate and sell in six months, that is a very different loan decision from someone planning to hold the property for years. For me, the best financing is the one that still gives the investor enough room if the original timeline changes. I like the way you look at financing based on the actual goal of the deal, and I’d be glad to stay connected and keep up with what you’re seeing on the lending side.