Interest only or ARM on Flips?

Hey folks,

Newbie wondering if it is wise to get an IO or ARM for a rehab you will be out of in 3-6 months. I have read about all of the creative financing options, but for the first one I would just rather it be straight forward. This one is more about the experience than the money…



Howdy Aaron:

It really doesn’t matter. My hard money guys charge 14 to 18% interest and get prepaid 4 months interest up front. It is interest only. If you can do better with any other method then do it. Splitting hairs over IO or ARM will not matter if you can turn $10K in a few months.