Private Lending verses Bank Lending
Either way you are both “groveling” to use OPM. If your credit is a mess and or you have no money to fund your first project investment, then hard money lenders are the way to go. Because when it comes to real estate investing, the interest amount on the loan really doesn’t matter if you flip the home in under 3 months or if you turn it into a rental (because your tenant should be paying down your mortgage plus giving you around 125 to 135% over your mortgage to make it a really good and steady passive income earning investment property). Hard money lending has higher interest rates (sometimes an ungodly amount). Just be sure the “numbers” work when working them into purchasing property, rehabbing costs, silent costs, and resale costs (for profit) and or comparable rental costs in the neighborhood (your plan B if home doesn’t sell).
If your credit is good, then definitely finance through a bank if you can meet all their standards. The interest rate is usually lower than private lending.
But if you want true financial freedom when it comes to real estate investing, then JJ and I truly recommend looking into getting an IBC (Infinite Banking Concept) program.