Posted by JoeS on November 06, 2000 at 20:47:03:
In response to your question…disadvantages include a much higher interest rate, usually a short balloon, sometimes a equity share in the deal. A HML will do what it takes for them to feel comfortable with you and the deal. Advantages may be speed, little down, not much care about credit(depends on the State in which you live), and the ability to do multiple deals. Hope this helps.