Hard money lenders in the north east area.

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Hard money lenders in the north east area.

Nana Kora
Worcester, MA · Member since 2016 · 6 posts · 0 votes
Hi BP family, Is it a good idea for a starter to use a hard money lender? If so what are the pros and cons with the private money lenders? I also want to know when is right time to of the season to start out looking for deals especially in the northeast area ( Massachusetts). Any comment or advice will be appropriated. Thanks
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  • George DespotopoulosBusiness Member
    Lender · New York, NY · Member since 2016 · 936 posts · 287 votes
    9y

    Hi @Nana Kora probably not the best idea to use hard money for your first investment. For one, many hard money lenders will require some sort of experience and if not expect a high rate and possible increase in fees on your first few deals.

    Also, hard money carries a shorter term, typically 6 or 12 months. As someone new to the field you should be able to feel out your first project and take your time, not have the added stress of paying high interest each month and being on the hook for the full payment soon. You could always explore refinancing out of the hard money before it's maturity date, but on your first few deals your focus should be squarely on the property.

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  • Nana Kora
    OP
    Worcester, MA · Member since 2016 · 6 posts · 0 votes
    9y

    Thanks @George Despotopoulos. So my question to you is what do you suggest will be the appropriate way to finance a deal since hard money is not the best idea for a newbie? I definitely know the banks will be difficult even though I have a perfect C.score. I have about $15K in savings and about $35K equity on my house.

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  • George DespotopoulosBusiness Member
    Lender · New York, NY · Member since 2016 · 936 posts · 287 votes
    9y

    @Nana Kora -- Well, there a few questions I should have asked you initially.

    1. Are you looking to get into fix & flips or buy & hold. 
    2. Do you have any experience in either? 
    3. Do you have property's in mind and what is the purchase price? 
    4. Do you know your FICO? 

    Why do you say the banks will be difficult? Is your income an issue? 

    Happy to get on a call to discuss if it's easier or reply here.

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