Hard Money Lender Loan Financing

[Brenda Akinyi]

As a new real estate investor, is it advisable to use hard money lenders to fund the first deal? I already have an FHA that was used to finance my current home and trying to raise funds for a conventional loan. I have also began exploring other sources of financing and would appreciate any insight on using Hard Money lenders. Thank you all in advance.

[Jesse Rivera]

It depends. Hard money is expensive. And if you have delays in your project and cannot refinance as expected, it will QUICKLY eat your profits. Double the time period of your project, and add 30% to the bid your contractor gave you. If you can still make a profit, I would pull the trigger.