Is there a difference in figuring how much interest you will pay when it comes to APR of a hard money loan versus APR on a credit card? Reason I ask is I have been getting offers from hard money lenders ranging from a 14% APR all the way up to 29% APR. I can use a directly deposited cash advance from one of my credit cards for as low as 5.9% for the duration of the advance. Now common sense says 5.9% beats 14% any day, but I am actually calculating things correctly?
Yes you are calculating correctly. The difference is you take on all the risk by using your credit cards and the HML takes all the risk by lending you the money. Also, most HML have a time frame of when you have to pay them back or they can charge you more fees to renew. Using your credit card offer avoids that.
Also, keep in mind, when you max out or run-up your credit cards, your FICO is going to drop. Which won’t happen with a hard money loan.