Best option private /hard money lender or conventional for flip

[Nicole C.]

Soooooo I'm wonder what you folks feel is the best option for flipping.... What do you use. Let's say you have capital for down payment for both and good credit scenario A. Conventional loan with no prepayment penalty and Heloc B. Hard money lender

[Sharika L.]

My answer is depends on how fast you need the funds. I had funds for a hard money lender in a week, where my conventional loan wanted pictures of the property, reserves in the bank for inspection issues, appraisal....we went with the hard money lender not to lose out on the deal and offered some rehab money. However, we much rather a lower interest and no prepayment penalties but sometimes who has time for that! Depends on your timeline. If you can use your HELOC to pay the entire amount in Cash, I would much rather do that.