Neighborhoods; rehab; design; investing principals like leverage, appreciation?

@Jesse Jamrowski 9% would come from someone paying my principal portion of the loan.

If you go FHA with 3.5% down, it will take many years before you ever get to an 80% LTV (Unless you pay significant additional principal every month/year)...

Have been principal broker in commercial real estate for decades.

During this time I was not charged principal and interest, How did you finance this deal?

During this time I was not charged principal and interest, How did you finance this deal?

I am getting this loan at 5% int and paying down principal and interest on each payment.

The poster who is third from direct to the principal who has a tape of loans to sell and wants 3 points on top for himself

Each option has its pros and cons that can impact your investment strategy and overall success.HELOC (Home Equity Line of Credit)Pros:Lower Interest Rates: HELOCs typically offer lower interest rates compared to hard money loans.Flexible Terms: You only pay interest on the amount you draw, providing flexibility in how much you borrow and when.Revolving Credit: As you pay down the principal, the available credit replenishes, allowing you to use it for multiple projects.Longer Repayment Periods: HELOCs often have longer repayment periods, which can make managing payments easier.Cons:Qualification Requirements: HELOCs require good credit and sufficient equity in your primary residence.Secured by Your Home: Your primary residence is collateral, which means a default could risk your home.Variable Interest Rates: HELOCs often have variable rates, which can increase over time.Hard Money LoanPros:Easier Qualification: Hard money lenders focus more on the property’s value and potential rather than your credit score.Speed of Funding: Hard money loans can be approved and funded quickly, which is beneficial in competitive markets.Flexible Use: These loans are designed for real estate investments, making them suitable for purchase and renovation costs.Cons:Higher Interest Rates: Hard money loans typically have higher interest rates and fees compared to HELOCs.Short-Term Loans: They usually come with short repayment terms (often 12-24 months), requiring a quick turnaround on your project.High Fees: Origination fees and other costs can add up, increasing your overall project expenses.For a BRRRR strategy, a HELOC might be the better option if you qualify and have sufficient equity in your primary residence.

The other way some states are looking at the role of wholesaler is that the wholesaler is NOT a principal to the transaction; i.e., he is an intermediary.