What are main benefits of using hard money for a rehab vs. say a short term ARM?
To those rehabbers, do you still use an agent or negotiate directly with owners?
Thanks,
Bob
Hard Money Loans vs. Conventional Loans
There are a lot of misconceptions regarding Hard Money Loans and Hard Money Lenders (HMLs). Most of the confusion surrounds the differences between conventional mortgages and HMLs. I wanted to take a moment and try to answer many of the general Frequently Asked Questions as well as to compare a HML to a Conventional non-owner occupied investor loan.
In most cases an HML can be obtained faster and easier then a conventional loan and while in almost all cases the amount you can borrow from a HML exceeds the amount you can qualify for from a convention lender the cost difference is minimal. HMLs are not for everyone and every HML has a different program and qualification process. However if you need fast access to capital for REI then a HML may be your new best friend.
You can find the complete analysis at the link below.
lhttp://dhlc.blogspot.com/2004/11/hard-money-loans-vs-conventional-loans.html