Under what circumstances would a balloon loan benefit a borrower?

You can borrow it, bring a money partner, etc.You can even birddog and wholesale properties to help you build up some cash.

This is the same guy that asks for money up front, then two days later needs to borrow $20 for gas and food because he hasn't eatin in two days. 2.

Based upon the definition of a hard money loans from wikipedia, it is a loan that is secured by the real estate and not the person borrowing the money.

., at a interest rate higher than 15%.)As EIGco mentioned, if the borrower doesn't pay or doesn't pay off the note at the expected time, you take the property.

… Yes this can be done… Generally when this is done is when a borrower is defaulting on the loan and they want to give back the collateral, instead of the lender having to foreclose.

Demand, driven by an abundance of money (investors with cash to invest somewhere after pulling it out of the stock market, people who wanted to be homeowners and were now able to borrow thanks to looser lending guidelines and low interest rates) went up quickly.

Makes your appraisal come out low when you're trying to borrow money.

He has a decent sized LOC set up so that he can borrow the money when he needs to do so.When he wants to go to an auction at 10:00 he picks up cash in the form of cashier's checks. $200K to $300K depending on what he is after.If it works out that he can not buy at a price he likes the bank takes the cashier's checks back without charging him for the use of the money.

They allow a non-occupant co-borrower.