And all that with no risk of borrowing money.. they get paid for time and a service.

If the borrower's house debt was included in the BK, then an eventual foreclosure does not harm their credit.

Years later it's worth $160K and you go to the bank looking to borrow 75% or $120K. $40K cash pulled out.

If I understand it correctly UBIT tax only applies if I borrow money to buy a real estate investment property, correct?

I was thinking of trying to borrow just enough money to get a hard money loan for a year or two and save two put down a higher percentage on a traditional mortgage.

They are generally very conservative with these loans and want a strong borrower, good track record, compelling story, appraisal, and a qualified GC to handle the work.

With a good amount of equity you are covered even if you can't reason with the borrower and have to foreclose.

Try to get and keep some momentum going so that you are diversified across a few projects/properties to reduce your risk.A lot of people on BP dislike borrowing from family, but if you know people who are at the start of retirement, it can be a win-win for them to pull out some of their retirement savings and loan it to you to get a steady income stream back.

It seems logical - as borrowing costs increase, required returns increase as well to cover the additional expense.

Essentially you are borrowing the money for 15 minutes.Ned