Not that hard a decision! A Hard Money Lender, a Partner or Both?

It’s the age old question in real estate, Do I get a hard money loan or should I get partners? Some people choose to get partners because they feel that hard money loans are too expensive and other people choose to get hard money loans because they think partners are too expensive. While at the outset one may think that hard money lenders are too expensive, it may be surprising to note that they can actually turn out to be cheaper than a partner or when used with partners allow you to increase your buying activity. This is because you will be able to leverage other people’s money and will not be required to invest as much yourself. Therefore you can complete more deals if you chose to and even further improve the overall return on investment. However remember, leverage is not a good thing unconditionally, so use it carefully. Here is a simple comparison.