Leverage: Hard Money VS. Traditional Financing and Rehab Loan

[Garrett Hardin]

Hey Everybody!

I am looking to put together my first deal in a couple months and I was brainstorming creative ways to do it. Originally I was thinking about going the hard money route, but am worried about the holding costs before refinancing if something goes wrong. Another idea I had was to just buy the house with traditional financing and get a construction loan to cover the rehab. Is this a possibility or does anyone have experience doing this? What terms could I expect for the construction loan?

Thanks in advance for your help!

[Jay Hinrichs]

Originally posted by @Garrett Hardin:

@Jay Hinrichs Thanks for the reply. I'm actually looking to invest on the east coast which I just moved from. Guess I should have specified that. Sounds like I need to do some more research into the lenders in the local area, but good to hear HM is a little softer these days

East coast lenders will be more expensive than most west coast especially if its a long foreclosure time line state like NJ or NY.. 

best rates are in CA  then everything else gets a little higher.