Hard Money Lending to start REI

[Kyle Nelson]

Hello All,

I am a 26 year old college graduate currently looking to start up my REI business and my biggest issue has been financing. I am currently working for a school and a corrections facility in order to support myself, but have not been able to save up enough money to get things moving. The conclusion I keep coming back to is that I will need a hard money lender in New Hampshire to get my business off the ground. I have done some research on hard money lending and listened to many BP Podcasts but I am still concerned I do not have the knowledge to jump into this right away. My ideal situation would be to have a 0 money down deal, rehab and refinance or sell to get out of the loan once everything is complete. I would prefer to buy and hold, but I realize that I may have to sell in order get enough money to purchase a buy and hold property on my next deal. If anyone has tips or stories on their journey of using a hard money lender I would love to pick your brain about it because it seems like this is my only path to achieving my goals at this point in my life.

Thank you!

[Matthew Stanizzi]

Using hard money to either fix and flip or fix and refinance is a reasonable strategy. Finding a deal that a hard money lender will want to work with you on is the hard part.

You may want to develop a relationship with some of the lenders. They’ll give you criteria that fits their lending and that will give you and area to focus on.  

If you don’t have experience find a partner to help you along the way.

Go to some of the local REI met ups. You may find lenders there that can help you.