Should I get a Hard Money Loan?

[Jerica S Buchanan]

Hello,

I am a first time homeowner but my dream is to become an investor. The property next door to me has been vacant for about two years. The owner was renting it out and after the tenants were gone so was he. I found a phone number for him but no one will pick up and tried to send a letter to the property next door to see if he would somehow receive it but it was returned due to being vacant. Not sure how to go about getting in touch with the owner to see if he is willing to sell so any other advice on that would be helpful.  I would really like to make it my first rental property. On the other hand if the owner is interested I’m not sure how to come up with the cash to purchase it. Should I be seeking a hard money lender or are there other options?

Thanks!

[Jay Hinrichs]

Quote from @Scott E.:

1. As far as getting in touch with the owner, you are already taking the best steps by calling him and sending a letter. You should stay persistent with those efforts. Call him often. Send letters and change up the way they look (post card, different color paper, handwritten, etc). I read once that on average you need to hit somebody with something like 4-5 direct mailers before they call you back.

2. For the funding side of things, a hard money lender is really not going to be ideal. Their products are tailored more towards fix & flip investors, and it sounds like this deal is a simple buy & hold. Call a local credit union to discover what your conventional financing options look like. And if you don't have the money for a down payment, start asking friends and family to see if anybody out there would be willing to partner with you on this deal when the owner finally responds to your outreach.

you need to go to the tax collector website and get the address where the owner receives mail.. mailing to a vacant house is not going to get you anywhere.