Looking to buy first rental using hard money
Hello to you all. I'm looking to purchase my first rental property in Houston, Tx or surrounding areas. I have been looking into hard money lending as conventional lending is not a option for me do to my high DTI. I found a hard money lender that will work with me. They are offering me a fully amortized 30yr fixed loan at 6.25% interest rate that I can put into my LLC instead of my personal name. The problem is they want 30% down payment. I feel like that's a high down payment but then again I have no experience at all with this. Does this sound like a good hard money loan for a first time real estate investor? Any advise and feedback is greatly appreciated!
Most Popular Reply
Using a short term HM loan, as @Kaelyn Motzel suggests, would only make sense if you (a) can get the house priced low enough and (b) the house seen some amount of renovations/improvements/upgrades to bring it up to full market value after said renovations (ARV). You would be able to get in to this project for a lot less out of pocket, if you can buy it right (70% - 80% ARV less repairs).