Strategy for financing my first deal.
Ok so i just finished speaking with a hard money lender and was told that they would fund my rehab of 50k. With 3k down. They will actually give me 90% of 130k (ARV) but i do but need it all. Ill have to pay it back in 6 to 8 months. So what i am thinking is, get the rehab done. Wait the 6 months it takes to get a refinance on the home and refinance when the 6 month wait period is up. Pay back the hard money lender what they let me borrow with the refinance money and now i have a conventional loan for 30 years.
QUESTIONS:
Does this seem like a legit plan?
will the money most likely be due monthly or all at once?
Is there a way that i could consolidate all of my loans and pay it off over a period of 15 years?
How can i finance a rental property for 15 to 30 years using a commercial loan or conversational loan?
Most Popular Reply
You need to talk to a banker about this, you're running a huge risk if the timing doesn't work out perfectly.
You should negotiate draws with your hard money lender so that you don't borrow more than you need, and save a little on interest.
as far as the specifics of financing, maybe @Jerry Padilla
could give you some pointers about commercial vs. conventional, 15 vs 30 yr, etc.