Re: Hard Money Lending
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you want to try flipping houses in this environment? no way man.
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Flipping can be profitably done in any housing environment. This statement is completely and utterly untrue.
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hard money loans are loans to people with horrible credit history....extremely HIGH RISK....with egregious interest rates (even worse then credit card rates).
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Not even close the the truth. Hard money loans work for investment scenarios that traditional banks will not finance - i.e., flips. HMLs are not generally high risk for the lender - profit is built into the loan in the case of default. HMLs are not too risky for the borrower either because HMLs aren't going to come after you for damages anyway. The interest rates are high on HMLs because there is insufficient competition in the market place - due mostly to the fact that you need substantial real estate, legal, and lending expertise to even get started.
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