How are you funding deals?

[Taelonn Harper]

How is everyone funding their deals with rising interest rates? 

Are you doing 5/1 7/1 arm loans? 

Still using hard money/ private money? 

[Mike Klarman]

I've seen a little comeback on the ARM deals. When rates were in the 3s like 8 months ago, no one did ARMs. But now with having to spend 4 - 5 points to get that bottom number on a pricing chart which is only 6.4% or so now, I see people paying less fees for an ARM product and not get locked into a rate for the longterm right now.

Hard Money is great for the fix n flip because of the included rehab funds, so if you are a contractor or have a great relationship with a contractor then you can just churn out those 25k - 30k profits every 3 - 4 months.

For Long-Term Rental products, HML is good but you can get better at your personal bank or credit union as far as a mortgage price, but those lenders will not lend to an LLC and they have all kinds of qualifications. Nobody loves what's going on with the volatility of the rate right now. 401ks are nosediving, the cost of borrowing money is skyrocketing. This is one of those times of survival. You have to know how to survive. Use Hard Money for it's strengths: the short term loans with rehab funds and then sell, do not hold. So, not BRRRR but BRSR - Buy, Rehab, Sell, Repeat: You bank money and gain experience. With money and experience you get treated like a player by banks.