Re: Hard Money Lending
he's going to buy the home cash.
you are going to take out a heloc
he uses the heloc funds to repair the property and increase value.
sell/rent or L/O the property
split profits.
am I missing something, because I don't see a HML in that equation. is he lending to the future buyer? why would they need hard money?
the other thing is that he's controlling the 'costs' of repair.
let's say you pick up the property for $200k.
You take a 50k heloc out.
How much you want to bet that the whole 50k gets used in the remodel, one way or another?
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