Re: hard money risks - Posted by linda
Posted by linda on March 01, 2002 at 12:37:35:
I am in no way an expert here, but I did my first deal with hard money. The points were cheaper than closing costs on a mortgage and the only asset attached to the loan was the investment. No appraiser has to enter the house and a 12 month loan gives you plenty of time to rehab. Many of them will work the points into the monthly payment. If your buyer can’t get their own financing you can refinance before the balloon comes due. - Also, good hard money lenders want to see you succeed and bring them more business, so they are very helpful if you have questions during the rehab.
Just my opinion, but I’d definitely do the hard money again. In fact, I just figure their cost into my original purchase price. Be careful, though. Just like anything else there are good lenders and bad lenders.