Updated almost 7 years ago on . Most recent reply
Hard money loan vs Conventional loan - out of state investing
Hey guys - I'm planning to to purchase my first investment property this year and am planning to invest out of state.
I've heard advice about working with a lender from the state where the property is because they would know the local processes.
However, I've been contacted with the opportunity to get 100% financing at 5% interest rates from what I assume is a hard money lender.
Knowing that this is my first rodeo, which direction would the BP community recommend I go with? Does going with a conventional lender provide me with direction and insights I wouldn't have with just a plain hard money lender? However as far as cash on cash returns it's hard to turn down 100% financing... what am I missing here?
Please advise.
Most Popular Reply
Too good to be true. Leave it alone or thoroughly vet this lender. It might even be worth a trip to meet him/her in person.