Hard Money Lender Questions
Hi.
I'm working on my first official rehab project, therefore, I have not established private money lenders at this point. I have purchased the property with my own money and am talking with a hard money lender to finance the rehab portion and some holding costs for the project. They will lend me the full purchase price of the property at 16% interest only.
Is it normal for a hard money lender to be the Mortgagee/Loss Payee on a homeowner's insurance policy?
Also, once the property becomes livable, I plan to live in it until it sells - with the assumption that the market I am in, plus winter months, will take a few months to sell (unless I get lucky and it sells rapidly). Is this typically a problem with a hard money lender who will have the first position lien on the property?
Thank you,
Bryan