SOFT MONEY FINANCING COSTS ABOUT 10-12%

Soft Money generally costs more than conventional financing, but less than Hard Money. At present, GET WHOLESALE HOMES has a number of soft money financing alternatives. The interest rate is currently 10 to 12%, with about 1.25% in points. A 10% downpayment is usually required, but this amount can often be cross-collaterilized against another property owned by the Buyer. It is also possible to finance up to 90% of property repairs with the same Soft Money loan.

Soft Money lending is based on both the value of the property and the quality of the Buyer's credit. Once prequalified, a loan can be finanlized in about 10 days.  This gives the Buyer the ability to offer a short escrow period to a Seller.