Use my money or someone elses in a flip

[Steve S.]

Would you use a hard money lender or your own cash to pay for a flip (property + rehab)

I can see advantages to both.

Using your own money you save on the cost of borrowing it and the fees and such hassle of getting it. This seems that the risk factor is alot higher.

Using someone elses money, you pay more to have it but more of your own cash stays in your pocket. This seems that the risk factor may be lower.

What are your thoughts on either.

[Eric M.]

Steve S.,

As a lender this is the type of attitude that we cringe at...only caring about your own risk and not about your lenders risk. The total risk of a leveraged deal is higher than for a cash deal because of the added interest costs. The risk however is split between 2 parties.
As a lender, I like borrowers with the attitude that "I am going to pay this lender back if it is the last thing I do". Not the ones who say who cares if it goes south, it isn't my money.
Remember, you aren't just a home buyer looking for money for shelter. You are a business person borrowing business capital. We want to know you are going to bust your butt to make the business work to pay us back.

There I go, longing for the good old days. :-)