Hard Money or Traditional Loan

Try a side by side comparison with the terms and consider different time frames. Sometimes the extra cost involved in the private money option outweighs the headaches that can come from traditional underwriting. You may also be able to negotiate better terms with your trades if you have a more flexible draw schedule with the lender. Many private lenders are very flexible on the number of draws. There are some very aggressive fix and flip private money loans with as little as 10% down and the rehab costs covered in the loan. Now that this is clear as mud, I hope that helps.

The best rate traditional loan generally don't knowingly loan on fix and flip. Too much risk, and too little reward for a loan you may only have a few months. There are specific fix and flip lenders. While the rates and terms are not the best, you just need to factor that into the overall numbers. Another alternative is a home equity loan on the existing house. But with all of them, sounds like credit may be an issue. Good luck.