Hard money lender: Use it on your first property?

Question

Good afternoon BP members,

Out of curiosity, would you all suggest to use a hard money lender to fund my first investment property? If so, what should I look out for?

If not, why should I avoid using a hard money lender on my first deal?

Monte Blackwell · Answer

I 2nd what Michael said. It's very important to have an exit strategy before you do anything. Purchase and exit is EVERYTHING!

Michael Ohara · Answer

Hi, nothing wrong with using hard money on your first deal, although they will beat you up on points and rate since you are inexperienced, but you gotta start somewhere.  Make sure you have a solid deal so you can exit in time.  The longer you hold the more the interest will cut into your profits.