Should I Use Hard Money To Acquire, Then Refinance Asap?

[Lou Ruggieri]

So I've found an apartment building I like and makes money from day one. Only problem is that this is my first one so banks are very nervous. Only true mortgage offer wanted 65/35 LTV which puts my downpayment at a mark I'd rather not part with. My broker said that they could put together a hard money loan in the 80/20-75/25 range and have interest only payments until I refinance. This seems like a strategy I've seen before esp with newer owners as it makes acquiring the property much easier. Interest only sucks so obviously the goal would be to refi as quickly as possible once the property is mine. It would also seem to be much easier to refinance at decent rates with the property already in my possession. Looking for anyone with experience doing this or have and horror or success stories to share?

[Anthony Dooley]

Don't focus on what it will cost you to buy it. Focus on how much it will make you. The lender may be smarter than you are. Keep that in mind.