Long term Hard Money Loan or Private Lender

7 Replies

I have an opportunity to buy a property that has high income producing potential. My question is, what would be the best way to approach this if I needed a long term loan. Also where could I find a long term Hard Money or Private Loan? Long term is needed to make sure that business is steady. Note: This will also be my primary residence, so is this even possible? Apologizing in advance I am still very new to this so it may be a silly question to some.

This is not a lot of info to go on.

Can you share more info?

For example:

What is the property (residential/mixed use)?
What kind of cap rate?
Why not get a traditional mortgage or commercial loan?

You would be surprised how many people will write you a check right now if a deal makes sense.

Why not get a conventional?

@Jackie Romo is this a commercial multifamily property(5+ units)? What will be the purchase price be?

Loans for a property you're going to live in are highly regulated.  Hard money lenders almost always prohibit living in the property.  Savvy private lenders will, too.  Getting a conventional loan is the best route for a long-term loan.  Is there some reason you cannot?

The property is multi use camping, Airbnb, recreational, venue. Has a good book of business already.

Ownerwill carry $375k I need $200k down. I will try conventional.

You'll probably need a commercial loan for something like that.  Conventional is only for 1-4 unit residential.  You might find one that will allow the owner to give you a second mortgage, but it will be tough to find anyone that will go behind the owner's mortgage.  And you'll still need some of your own cash in the deal.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here