Real Estate Agent · Chesterfield, MI · Member since 2017 · 53 posts · 7 votes
Any one that’s used this strategy of using hard money and private money on a deal. I would love to hear your experience with that and the process.
- currently I have a flip with a private money lender who lenders 75% Purchase price 50% Rehab. Which is fine but I’m working on buying another property (but I would have to wait to sell that property to buy another ) .
So I’ve been researching I can use hard money as the 1st lien and use hard money for just the down payment portion to make it 100%.
Investor · Pembroke, MA · Member since 2012 · 198 posts · 49 votes
5y
I have some clients that will use this strategy. They will use us for the 1st and either JV or get a private loan for the Down Payment. It's common when they have a family member loaning them the rest. I'm not 100% sure but I believe they usually pay them back a set amount when the property closes or if it's a private money person typically you'll pay higher points on the 2nd because it's not secured.
Investor · Pembroke, MA · Member since 2012 · 198 posts · 49 votes
5y
We don't offer that, we only charge interest payments. There may be other lenders out there that do. Its not good business in my opinion. You may also find Private Investors that like your deal that could also Joint Venture with you being the money of the project.