Financing through Hard Money Lenders

[Gregg McCarthy]

I'm a new investor with 2 properties, I have found a duplex in an area where there aren't many available. Since it fairly turnkey and has long term renters it's not a good BRRRR candidate. I have found a hard money lender that does 30 year mortgages at 20% down, 6.32 % interest. Does anyone have any experience with this type of loan?

[Ronald Isgate]

I agree above - no reason to get into a long term hard money loan. If you have exhausted calling around to conventional lenders/banks and the debt/income ratio is just not there, then you have two options really - first, would be not to pursue it of course. Second though would be to get a short term HML that would allow you to make any repairs, increase rents and stabilize the property. Once you get to that point you should immediately refi out of the HML. If you go that route, make sure that the HML you get does not have a prepayment penalty (or the smallest one you can find), as your goal should be to get out of it as quickly as possible. Hard money has its place and use, but its not for long term financing.