Hard money lender or Banks

[Selena Harrison]

Hey BP, I was wondering if it’s best for me to get a loan from a HML or should I just go to a bank to get a loan? By the way I have good credit . I would really appreciate any feedback you give me.

[Caleb Jordan]

Originally posted by @Selena Harrison:

@Geoff Garrett Thank you, I want to flip houses but I’m not sure if I should get a loan from a hml or from a bank.

Hey Selena, most house flippers use a HML. This is because they will lend you money to fix it and purchase it, they can close quickly, and will lend on a house in bad condition. Banks are going to be skiddish on a house in disrepair.

So it really depends on the house. the seller etc. 

Talk to some banks and HML, see what sort of loans you could qualify for. What sort of rates you can get. What sort of homes they lend on.

Maybe even get a proof of funds letter from a bank and a HML.

Then go find a house. If the roof leaks, the heat is broken, etc and the seller wants to close in two weeks a HML is probably your only option.

If the house is just stuck in 1980s but everything pretty much works, and seller is not in a rush and you have a way to pay for a remodel out of your own funds then a bank makes sense.