Updated over 5 years ago on . Most recent reply
When To Bring in A Private Lender?
Hello BP Members! I am writing to ask a question related to "the order of things" when it comes to starting out. I have not bought my first deal yet because my seed money will come from a refi on my current home. Refis are taking a long time right now, but mine will finally be ready to close in 2 to 3 weeks. I have to be careful not to mess up my refi so I don't want a hard credit pulled and can not put a contract on anything till the refi is done. I can't house hack yet but that may happen in the future to take advantage of less down. I want to be able to buy two properties this year or more but not too many. Seems too stressful in light of the craziness of the world right now. I am looking at BRRRR, STR or maybe turnkey buy and holds if I can find one at a reasonable cost in my region of Virginia. We will have to see what I end up finding first. Anyway, I will have enough $ to put down 20% on 1 or two properties depending on condition and price but was wondering if I should go ahead and use hard money or private lenders anyway. I can't lie they make me nervous, but it seems fairly straight forward as well. When would I bring in a lender like that? Now, when I'm still weeks away, or when I actually find a deal and want to search out options in financing? I am also searching for off market deals and realize I'd be better positioned offering cash but don't want to spend my whole wad. Ugh, I just need someone to tell me a coherent way to approach the options so I can focus. Thanks!!