So this is my very first deal and I'm literally pulling my hair out.
It is a multifamily in a prime location near mass transit going for 145k. It just dropped on market and I really want to snatch this up ASAP.
The only thing is that I'm really weary of hard money loans. Can anyone give me any advice on finding a good one or questions I should ask? My market is getting very hot and competitive, so cash deals are king around here. I have a high credit score and don't want to eliminate other ways of raising cash that may be less risky. Please help! In this situation, would you use a hard money lender and refinancing into a conventional after repairs? or is there other means of buying a property such as this? Any advice would help.
HML if you need the speed and are willing to pay the higher rate/fees.
203k if you have all the time in the world.
No law says you can't place two offers on the same property. The HML-backed offer should be way lower. Basically giving the seller a choice: "do you want top dollar, or do you want fastest close? I can do either and want the property, but if you want that fast close I need to buy it for less to make up for those fees and that rate."
@Chris Mason Thank you! I've talked to my mortgage broker who recommended that I proceed with the 203k right now. Thank you for your advice. In my next deal I'll have that option on the table.