Posted by Joseph Zimny on August 14, 2003 at 23:17:05:
Of course, we would need to know if you parents have good or bad credit. If their credit has no major hits on it in the recent past then my sense is that a home equity line of credit based on that property would be far cheaper than a hard money loan.
Make a list of potential lenders, begining with the current mortgage holder, and approach them with a plan for using the HELOC. I recently sent out a sample prospectus that I use to a bunch of people from this site who are seeking funding, as well. This prospectus might also help you obtain a cheaper HELOC. Good Luck!