am looking to purchase my first property, I have yet to obtain the property- however I am interested in buying and flipping. I am currently deciding how to fund the property. My husband and I have 49,000 from personal savings to invest however I have been communicating with a successful REI who offers hard money loans to those in need. This particular investor wants you to have at least $20,000 in your business bank account before they will give you a loan. I have a LLCand business account so that's not a concern of mines.His assistant stated they do not give 100% financing so that is why they require that amount, to cover the rest of what they will not finance. The interest rates are anywhere from 8-12%, I feel that is on the higher end. My and husband and I have good credit each but I really want to avoid using personal credit to take out loans. I am in the midst of building business credit so I expect to have cash credit cards for my business by the end of the year. I was attracted to this lender because there are NO hard inquiries on your personal credit report and they do not list this loan on your credit unless you default and stop paying on the loan. I was thinking we should just use our own savings to fund the entire project but then I am worried there will be hidden cost our savings cannot afford so I thought taking out a loan to help will be best. What should I do? What is the smart decision in the end that may cost less and have a greater profit? We live in Florida but I am from Philadelphia and find the houses are extremely cheaper than the ones in Florida.
