$100K Business Line Of Credit (BLOC) vs $100K Hard Money

$100K Business Line Of Credit (BLOC) vs $100K Hard Money

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies. Hard money is great for real estate, but the industry average is 11.5% interest - including the business line of credit's percentage points as passed on by the private investors (i.e. $14,500 for every $100K).

A line of credit lets a business borrow up to a certain amount of money and will only charge interest on the amount of money borrowed. Business lines of credit are typically issued by banks and business lenders. The highest interest a business line of credit will have is ~3% to turn that loan into for cash from one's credit card or turn one's credit into cash at its highest (i.e. $2,850 for every $100K). One is saving 12,150 by being lendable and having business lines of credit available for opportunities.

    • Related Articles

    • Do Hard Money Loans Show On Credit Reports & Affect DTI Ratios

      Most hard money loans, such as fix and flip loans, will not show up on a personal credit report; however, this is not always the case, and this should be discussed with the lender.

    • What Credit Bureau Is Used When Applying For Financing

      Our lenders are brokered into a 'pool' when performing a soft credit check for all 3 credit bureaus (i.e. Equifax, Experian, TransUnion). Our system then chooses the best score based on what offers one is likely to receive: pre-approval to finance ...

    • Can K-1 Be Used To Qualify For HELOC

      A Form K-1 shows money paid to a person from a business, including the percentage of ownership that the person owns too. Banks can use K-1s to determine the total qualifying income (minus any losses) for a home loan.

    • Lawful Money and Amortized Tax Depreciations Such As Straight-Line Depreciation

      An amortized tax depreciation will gradually write off the initial cost of (an asset) over a period. One such example is straight-line depreciation which spreads the cost of an asset evenly over the time it will be used, also known as its "useful ...

    • How Does Financing Work for Half Your Mortgage

      We currently have (2) ways to pay: a full one-time payment via credit card(s) or 24-months pre-approved financing for up to $25K (e.g. guaranteed approval for good, bad, no credit). Each lender will require a credit check to qualify for a loan. ...