Buy & Hold

[Shawn McCarty]

Hello,

I am trying to pickup my first buy & hold (first real estate investment period)... I have some potential properties, I have some people who would lend hard money based on the deal alone. My only problem is this... Once I buy the house and put a little money into it... What next? At that point I would be in 4 points (not much total based on the properties I am looking at)... and I would have 12-14 months to pay back the hard money... Do I refi conventional? If so, how can I really amass a portfolio doing it that way? I would have a million loans in my name... is that even possible?

Thanks everyone in advance... Biggerpockets has also been a big help in the past!

Thank you,

Shawn - The Newbie!

[Ryan Billingsley]

@Shawn McCarty

I would recommend researching the smaller banks in your area.  Many of them offer commercial loans for residential investment properties.  You can get one commercial loan for multiple investment properties.  These are known as portfolio lenders and they keep the loans in house instead of selling them off like the larger banks do.  If you buy the property right (at a discount) using hard money or cash, many banks will allow you to refinance the property after being leased for 6 months and it will be based off the appraised value not your purchase price.  In many cases if you buy the property right, you can end up with a property that you have zero invested in cash flowing.