Posted by Michael on July 05, 2003 at 24:44:01:
Hard money lenders are business men plain and simple. They lend money at higher interest rates 11%-15% in most areas and charge you several points. You set up the terms with a balloon payment usually 6-12-24 months or whatever but you only pay monthly interest payments, nothing towards the principle balance of the loan. Plus having access to cash in hours is a huge advantage when negotiating with sellers who may need quick money.
If you and your husbands credit is good you should learn more about LIBOR Interest Only Loans. do a search on that, extremly low rates, this LIBOR is tied in with Europe markets.