Private money or conventional loan

[Brittany Edwards chu]

Hello! I’m a newbie investor looking for my first deal and the home I’ve had my eye on (fix and flip) just went on the market. My market is very hot, and I know this listing will be snatched up. I spoke to my mortgage lender who did my primary home mortgage and he believes we should have no problem getting a conventional mortgage with our profile. I did a quick search through here and seems to be some private money loan options that seem very appealing. My question is which route should we go (conventional or private money) to Get this deal done fast if down payment isn’t an issue? Thx In advance for the help! 

[Reid Chauvin]

If you're talking buy and hold, then conventional loan will likely get you the best rate/term. Depending on your market, there should be some lenders out there who can get it done in less than 30 days. If the seller wants something quicker than that, then private money might be a better bet. 

If you're talking fix and flip, a Conventional mortgage is probably not the right avenue for you. These loans and the process, level of scrutiny and costs associated with them, are geared for longer term solutions to hold real estate.