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Updated almost 8 years ago on . Most recent reply

Ben C.'s profile image
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Ben C.
  • from Metuchen, New Jersey
  • Member since Nov 13, 2015
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Ben C.
  • from Metuchen, New Jersey
  • Member since Nov 13, 2015
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Ben C.
  • Metuchen, NJ
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Creative Real Estate Financing

Cash Vs Hard Money Loan

Ben C.
  • Metuchen, NJ
Posted

Hello All,

Firstly I only deal in flips. On all of my previous flips I exclusively use cash (helps me get properties and avoids all of the mortgage related headaches that come along with closing).

I am exploring two different options going forward...

1) Standard Hard money loan 9-12% + 2-3 Points

2) Buy all cash and get a HELOC right after closing to free up capital to use for renovation expenses

Thoughts?!

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Stephanie P.
#5 Mortgage Brokers & Lenders Contributor
  • Washington, DC Mortgage Lender/Broker
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Stephanie P.
#5 Mortgage Brokers & Lenders Contributor
  • Washington, DC Mortgage Lender/Broker
Replied

@Ben C.

I'm a lender, but cash is always king in my book.  If you can self finance these deals, go that route and save the interest.  

Stephanie

  • Stephanie P.
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