I'm a newbie looking for my first flip in the Richmond, VA area.
Looking for thoughts on using hard money for my first flip.
Thoughts are you should make sure you have everything else in order before reaching out to a lender. Title company, Insurances, Contractor(s), know the market, know the days on market for properties.
Find out from lender if there are monthly minimums, how many loans they're closing monthly, how quick it will take to close, and what they will need from you.
You're going to want to operate quickly because the longer you have the money the more it will cost you, so get your ducks in a row.
I would definitely go with a conventional mortgage first. Those guys could be helpful later when you know what you are doing but their interest rates are high and they will eat you alive if you don't have your ducks in a row.
And I agree with @James Canoy - even though I do hard money loans, you should ALWAYS seek conventional financing first. Keep asking until someone says yes, and if no one says yes, then explore HMLs.
Hard $ can eat up your profit very quick so as its already been stated, make sure you have all your ducks in a row before you pull the trigger. Make sure your also hunting for your exit plan and have a buyer lined up so you can get out asap. I do love the thought of seeking all other financing options before you go hard $ unless you know its a quick, quick project.
Thank you all for your advice!!!
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