Hard money lending for BRRRR

[Cory Spitznagel]

Hello all, I have been researching REI the past year and have yet to make my first deal. The first plan is to buy a duplex (I rent a 600 sq ft condo now for $900 a month 😒🔫) and house hack. I have a good amount of savings. My question is really just how the hard money lending works for brrrr? Is it even a good means of financing? Mainly I want to know if you have to make monthly payments while rehabbing the home and until it's sold or do you just incur interest all along and owe it after the home is sold? I want to make my first deal soon but just want a better understanding. Thank you!

[Brent Coombs]

Originally posted by @Cory Spitznagel:

Hello all,
I have been researching REI the past year and have yet to make my first deal. The first plan is to buy a duplex (I rent a 600 sq ft condo now for $900 a month 😒🔫) and house hack. I have a good amount of savings. My question is really just how the hard money lending works for brrrr? Is it even a good means of financing? Mainly I want to know if you have to make monthly payments while rehabbing the home and until it's sold or do you just incur interest all along and owe it after the home is sold? I want to make my first deal soon but just want a better understanding. Thank you!

If you're going to live there (even for just one year), AND you have good savings, why seek out HML? Why not an FHA (3.5% deposit) owner-occupied loan? Of course, if you have 20%+ deposit, you get cheap cheap Interest rate, with no Mortgage Insurance Premium! And if it's not "habitable" as-is, how about adding a 203k reno loan too? Cheers...