$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.
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