Hard money loan then sell on MLS?
Hi all-
Is it possible to close on a property with a hard money loan, then turn around and sell it on the MLS?
Would lenders lend if I had this exit strategy in mind?
Do they charge early payment penalties?
Thanks,
Ben
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#4 All Forums Contributor
- Real Estate Broker
- Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
Possible? Yes, it's possible on a 1 off situation I suppose.
Is it a viable business strategy? No, it's not. This is a dog. Take it behind the barn & shoot it. Far better strategies out there then this one. Think about it. The property is exposed to the entire market & nobody but you buys it. How are you then able to resell it to the same people who already had the opportunity to buy it while at the same time covering your Hard Money Loan costs & putting a profit in your pocket? If they wanted it they would have already bought it.