Using Hard Money

[Rich Darragh]

What is everyone's opinion on using hard money to invest in real estate?

I know you are risking a lot less money (and in turn you have more cash to do more deals simultaneously) and it drastically raises your ROI, but I just wanted to ge the BP world's opinion on it.

[Ann Bellamy]

If you can get a better rate elsewhere, do so.

If you can't get a better deal elsewhere, or the timeframe doesn't allow for cheaper financing, then make sure the deal supports it before you commit.

And you're not really risking less money. You always sign a personal guarantee on a hard money loan, so if you default, and the foreclosure doesn't make the lender whole, they will go for a deficiency judgement.

You use the tool appropriate for the job at hand.