Don't Use High Interest Financing for Long Term Projects!

A 1% higher interest rate on $100,000 will cost you $1,000 over 12mo

A 4% higher interest rate on $400,000 will cost you $16,000 over 12mo

Using higher interest rate loans for a few months for a short term project, such as a fix and flip, is manageable. However, if you are financing a buy & hold project, high interest rates will greatly impact your cash flow!