Hard Money or My Money?

[Katy C.]

Hey All!

I am getting started in the Kansas City area, looking to purchase some buy-and-hold properties. I have about 30K that I could invest, and I'm wondering if I should go that route, or try to get hard money loans to finance these initial investments. Total purchase price of initial property investments (meaning in the next 6 months) would be around $120K.

Thanks

[Rick Baggenstoss]

I think it's best to use your own money with less expensive or no financing. If you go too fast, leveraging up with every chance you get, you'll be facing a severe financial crisis at some point.

If you haven't asked local banks, friends & family for participation, then you shouldn't be looking at hard money. Keep looking for killer deals that others would love to be part of.

Did you run some example numbers? With/without HML?

Rick