The knowledgeable, able and experienced buyer can use hard money loans to their benefit.
It is when this option is misapplied that real trouble surfaces.
Just like the zero interest loans, in their inception, were for builders in need of short term money, was misapplied for traditional home purchases the wheels on the wagon started to wobble.
One must think really, really hard before choosing an option that can raise your costs by 30%. That is expensive. Proceed with care. Hard money IS a solution for specific and real problems. This would never apply to a home buyer intending to reside in the home who does not have the guarantee of a financial windfall. (are the wheels wobbling?)
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL