Hard Money Advice

[Greg M.]

Hello all,

  So I have recently purchased my first multi-family @$105,000 using conventional financing.  Current gross rents are almost 3.5% a month ($3500,00). This area has fantastic cash flows, granted they are mostly C units in C neighborhoods.  I would like to start buying some more, I have received some off market offers to buy properties close to 4 and 5%, one in particular I can estimate at all in costs of $120,000 bringing in almost $5000 a month gross.  The issue is I see Hard Money as my only recourse and I am still hesitant as I have used it before.  Can anyone offer any advice or expediences? I have been reading up everything I can and have heard a lot of good, but whats the negatives?  What issues can I expect?

Thanks all

[Tom S.]

@Greg M. Why not just get a commercial loan for the 8 unit instead of hard money? If you're looking to buy and hold, HML is not really long term money anyway. You'd prob be looking at 5-6%, 20 year amort. for a commercial loan.

- Tom