The Real Cost Of Hard Money - HardMoneyBankers.com
How much does hard money cost in Philadelphia or any other market? Is it as expensive as people think? The answer to that is, NO. Because hard money is normally private money, the cost structures can vary quite frequently. This can only be written from the perspective of the way HardMoneyBankers.com structures it. There are few things to really consider, but the most important is time. Normally the money you are borrowing for your next flip will be an interest only loan that is up to 12 months in term. You will see rates from 12-16% and think, "That is so much". The reality is, it depends on you. Time is important because that percentage breaks down monthly. If you are paying roughly 1% a month for the money, you will want to complete your project and sell it as fast as possible. If you sell it in say 4 months, you now paid 4% on that money. If you sell in 5 months, you paid 5%. The next time you have a project that needs funding, be sure to determine how long it will take to sell. Start your calculations from there in regards to cost of money and determine if it makes sense. You will find it to be quite affordable as it rare to have a hard money loan come to full term.
Ian Walsh215.839.3271
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