Hard money lenders for rental property

[Kristopher Lamy]

So i have found a couple rental properties (price high $50k to low $90k) that I’m interested in, in Baltimore City. And i was advise to reach out to a hard money lender for financing. But before i do i wanted to know what questions should i ask and what favorable terms should i try to get?

[Caleb Jordan]

Originally posted by @Kristopher Lamy:

So i have found a couple rental properties (price high $50k to low $90k) that I’m interested in, in Baltimore City. And i was advise to reach out to a hard money lender for financing. But before i do i wanted to know what questions should i ask and what favorable terms should i try to get?

 If these properties are in pretty decent condition and a 30 day close is not an issue then conventional lending is what you should look at. Assuming you don't have any issues qualifying for a loan.

There are hard money loans designed for buy and hold properties. Lots of options in that space, from 24 to 48 month io loans to longer term amortized loans. These can make sense in the right situation. if you need to close fast, run into DTI problems, or seasoning of funds issues then hard money can make sense.

If your plan is to rehab then rent out hard money starts to make more sense for purchase and rehab then you refi out.  But there are conventional and commercial loans that can help fund purchase and rehab as well.