Hard money vs Private Investor
I live in Wisconsin and it appears that there is a shortage of Hard Money lenders in this part of the country. Should I continue to hunt one down or should I ty to find a Private Investor? What are your thoughts on the subject?
Many thanks
Eithni
With hard money lenders, you usually have to pay a higher interest rate a higher amount of points with obtaining the loan. Some have 18 month balloons, which you have to watch for.
With an investor, you can structure the deal so that the investor loans you X amount of dollars and you split the profits when you sell the property. OR you can pay the investor a return on their money. Example: They loan you $20K and you give them a 20% return on their money.
If you can't find a hard money lender, then place an ad in the paper for an investor to loan you money.
Tanya