Cash vs Hard Money - How are ya'll funding your deals?

[Daniel Jackson]

When it comes to choosing whether to fund a deal with cash or hard money, I think what matters most is your financial position, but also limiting risk. For someone that might be able to do both, the idea of using hard money is to leverage risk. When using hard money, you are able to spread your capital across multiple deals, rather than putting all your cash into one deal and taking a loss. At least with your capital spread across multiple deals, it is less likely that all of your deals will flop and you lose all of your money. And ultimately with hard money your return on investment (ROI) is greater, because you have less cash out of pocket on those deals compared to buying those deals with cash.