Can I use Hard Money on out of state rentals?

3 Replies

Hey BP,

I own a property out of state and am looking to use Hard Money to buy, rehab and hold more properties in the same region.  Ideally, I would like to buy distressed properties, fix them, then refinance out of HM into a conventional Mortgage. I understand there is a zix month seasoning of a loan prior to obtaining a new mortgage. Will this still be the case? Will this strategy be possible?  Will I be able to obtain properties from an auction with this strategy?  Is anyone doing this?

Hi James,

I'm an Account Executive for a private money lender. You should be able to get financing for property out of state. Some lenders, like us, don't have title seasoning requirements whereas others do. Personally I would see if you could do a cash out refinance on your current out of state property and get financing for the acquisition to best leverage your funds.

Hope that covers a portion of it.


Buying at auction with hard money is tough.  Can't to that in Georgia, you have to pay at the auction, there's no way to securitize it as its getting bought.

Plenty of people do hard money into long term mortgages.  Its expensive, but if you buy right it can be worth it.  Angel Oak out of Atlanta has a Hard Money to mortgage program, but I'd shop it against using other lenders, I know I blow their rates and fees out of the water on the hard money piece.

@James Ehrig

You can rate and term refinance after day 1 of any loan, including hard money. You have to wait 6 months to cash out refinance.