Updated about 5 years ago on . Most recent reply
Seeking recommendations for Hard Money Lenders
Hey everyone,
After a long period dedicated to research (and possibly a case of analysis paralysis), I've built up enough confidence where I'm "comfortable" pulling the trigger on my first real estate investment deal. It will be a BRRRR deal, and I plan on funding it using cash and HML. Can anybody share with me good or not-so-good experiences with particular HMLs?
Thanks!
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Rental Property Investor
- Boulder, CO
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Rental Property Investor
- Boulder, CO
@David King Here is a guide for you on how to use lending with BRRRRs. Personally, I've had a good experience with BRRRRs. I think the pitfalls are these:
1. Lending terms - terms can be very high for your first 2 deals. I consider this the price of entry for business so take care to do projects that go quickly and save your HUGE deals for later.
2. Prepayment penalties - don't pay prepayment penalties on short term money.
3. Loan length - find a program that is 12+ months. This give you breathing room to execute your plan and not get stuck paying extension fees and penalties should your project go over.
3. Refinance - this is the trickiest part of the process and not directly related to a HML. Here is a guide to help. Just make sure you have funds aside to help close this part of the loan on the off chance it goes really south.
PM me with Q's!