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Updated about 5 years ago on . Most recent reply

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John Penzo
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Pulling the trigger on trying to decide on hard money or private

John Penzo
Posted

Ok,

So currently I own 9 properties. 4 here in the The Dallas, TX area where I live, and 5 in the Dominican Republic. Out of all these properties, I’ve flipped 2 of them and held unto them. 
I’ve managed to acquire a personal line of credit for $40k. I’m considering on using either a hard money lender to cover the purchase and repairs, and my line of credit paying for the downpayment and the monthly interest for the hard money lender. I also have a private money lender, but they would take longer to fund. So my question is, would it be wise to pull the trigger on finding the deal and going forward with it, and if so, which route should I take, the hard money lender or private lender route? (Of course considering that the private lender is going to be less expensive to borrow from)

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283
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Dave DeMarinis
  • Lender
  • Santa Rosa, CA
254
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283
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Dave DeMarinis
  • Lender
  • Santa Rosa, CA
Replied

If you are active, I'd look at doing a project with your Private Money they can fully fund and use HM for the current deal. It isn't great for your PM lender to be in second position with rates that are based off Private 1st position. As a borrower, you always want to take care of your lender, particularly your Private Lenders. They are like your water source. 

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