Re: Hard Money Lending
>>>>>>>>>>>>&g t;
This is my thinking also. Am I wrong in my thinking that getting him to cover the carry cost will reduce my risk in the deal?
>>>>>>>>>>>>&g t;
Not really, at the end of the day the title is in your name and the risk on resale value is yours. And this is one of the largest expenses and this is why he brought you into the deal I think to cover carry costs. He he pays the costs then what do you bring to the table? Just a name on the title? Makes no sense. I doubt this guy is really looking to steal money from you, just lay off the high risk involved and dont see why you would risk your credit and savings for such a small potential gain in a tough real estate market
As a general note I have no problems with hard money lending and myself took out a hard money private loan on my last real estate investment. But be watchful of the fees and costs involved. My deal was a market rate deal. Too many people are swayed as amatures into the real estate market and look to get in at any cost possible, which obviously makes no sense when it comes to profit margins and why there are tons of foreclosures out there now.
Steve
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