Cost of private lenders or hard money

[Joe F.]

I am just starting out learning about REI and have a question. I don't get the concept on the cost of using hard money lenders VS conventional loans. I would like to eventually buy houses to rent. Wouldn't the high interest on private loans cut into ROI? I think a private loan may be the way I have to go due to having not the greatest credit, at this time. The high interest is the thing that's bugging me on this.