New investor, I had private money all lined up and started looking for deals. Now I'm finding deals and was ready to move on my first BRRR but money fell through. Any reason I shouldn't use hard money since I was counting on that cash. I personally don't have cash available at this time but don't want to miss out. Any thoughts on where I can borrow for purchase price and rehab?
@Ryan Shannon Hard Money is still a very reliable source of funds for a lot of people. There's got to be some good lenders in your area. Maybe try the Georgia forum? Or even try visiting some local REI groups? Just thinking out loud...but yes, HML can be good. I just prefer a reference. Hope all of that makes sense.
If your private money pulled out you may need to take a hard look at the deal and make sure your numbers are right. If you look hard enough I am sure you can find someone to give you money but you are going to pay a high price especially if you have no skin in the game i.e. you are looking for purchase and rehab money. You should at least come to the table with the rehab budget.
@Andrew Postell it makes perfect sense, and that is excellent advice. Thanks
@Keith Perkins they just decided against investing in real estate I haven’t even presented a deal yet more, just a business plan and a business model of what I’m going to be doing in the next few months. They were all about it then decided against it in the 11th hour which happens, But I’m not gonna let that stop me so I’m looking for alternatives￼
HML interest rates and points do not lend themselves to buy-and-hold (e.g. BRRRR).
@Ryan Shannon I by no means am looking to discourage you. But I have a feeling you will have an extremely hard time to find someone to put up 100% purchase and rehab outside your personal circle. But good luck!
I'm going to respectfully disagree with @Alex G. . @Ryan Shannon there are a number of successful investors who buy with hard money then refi out once the work is done. It can be difficult to begin with to get conventional money for a property that needs work. There are a lot of lenders and options out there that could work for you for hard money to help you keep your money in pocket to continue to purchase you just need to find the one that fits you best. PM if you have any questions
@Odie Ayaga I will do so for sure thank you.
Also want to thank everyone else who replied all the information is been really really helpful