Re: Hard Money Contracts
Posted by OC Andy on October 01, 2007 at 19:25:52:
In Reply to: Hard Money Contracts
Posted by Danny on September 29, 2007 at 20:07:00:
Danny:
Hard $$$ should never be a long-term solution for a flipper. If your credit is less than A-paper quality, consider going with a subprime product (if you can find one) to finance the purchase. You'll have to compare the costs of the HML and the subprime lender (incl. the prepay).
Since you are just starting out in this business, I'd recommend attending REI meetings in your area and talk to as many investors as possible about what they do and ask a LOT of questions. Also educate yourself on topics such as flipping, lease options, tenant-landlord law, etc. and become well-versed in those "bread and butter" types of homes in your area.
The price of an education definitely outweighs the potential for a multiple $$$,000 mistake the first time out of the chute.
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