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Updated about 4 years ago,
Hard money lender question
In regards to hard money lenders, do they prefer to fund the entire deal and take their % or can it be broken up? Meaning I put the down payment down and they fund the fix up costs for a fix and flip?
For example for a fix and flip do hard money lenders prefer to just purchase the property cash as well as fund the rehab then recoup their money plus the fee at the time of sale?
For a buy and hold BRRRR, same question. Do they prefer to purchase and fund the project then at time of refinance they get their money plus their % back?
Finally I can't remember what I heard on a podcast in regards to using hard money. They either said to not use hard money on fix and flips or to not use hard money on BRRRR's. Which is better to use hard money if you had to?