Hi, is it a good idea to use a hard money lender in Omaha Nebraska?
What is the reason you are looking at HML as opposed to conventional financing? What is your end goal for this property?
If you can give a little more information maybe we can get a better idea on advice to give you. HML tend to have a little higher rates than conventional loans, but they are perfect for fix and flips, BRRRRs and people with high DTI that wouldn't qualify for a conventional mortgage.
Their interest rates are a lot higher, so if it is for long term loans...no.
@Allen McGlashing thanks Allen yes I’m trying to do a flip or possibly a brrrr if I can pull out most of my initial investment.
@Theresa Harris that’s good to know. Thank you
Then Hard money makes the most sense. You get a interest only loan for 6-12 months and once you sell the home or cash-out refinance you pay the Hard money lender off. In my experience they are really easy to work with, close a lot faster then bank financing, and some fund 100% of the rehab.
It sounds like the plan you have is perfect for hard money.
@Allen McGlashing perfect. Thanks Allen.
If it’s you’re only option to get a deal done and the numbers work - go for it.
Obviously, is probably going to be expensive money, but look at the ROI and if it makes sense, do it.