Hard money lenders for Buy and Hold properties

[Kurt Mace]

Hello everyone,

I want to start financing buy and hold investment properties but I am looking for funding. My question is this. How can I use hard money lenders for this type of strategy? My problem with hard money is not the percent in which they take as I find properties with a great return. The problem with the numbers that I see is the timeframe of repayment. 1 to 2 years at even no interest would mean a 50% - 100% return each year. So what would be the best strategy? Are there hard money lenders that lend with longer terms or is there a way to quickly pay off that investor via refi or something else?

Thanks!

[Jay Hinrichs]

Originally posted by @Sean Blomquist:

@Kurt Mace you are looking at it as though the HML is the only financier. You are only using the HML to acquire and rehab the property. Once the rehab is done, you've built the equity into the property with the rehab, so you can work with a lender to do a rate and term refinance into a long term loan to hold and cashflow. Typically you will want to work with a direct to FNMA lender that doesn't have any overlays, but smaller community banks or credit unions that service their own loans could work as well. Good luck!

EXACTLY and get pre approved before you count on it.. this is how buyers used to take me out of my HML back in the gogo days of pre 08