Hard Money to Purchase Rental Property!

[Joey Hampton]

I am wanting some advise/suggestions on what to use or how to purchase a property that is going to be used for rental purposes. I have recently purchased my own home at $80,000 and used an FHA loan, so I'm tied up in a mortgage payment at $625/mo. I have heard of some people using hard money to purchase a property and all that, but I don't know all of the details. I have little money to put down as a down payment as of right now. Any suggestions/advice would be great!

[Christopher Blanco]

There are hard money lenders that offer refinance. You just have to evaluate if the extra money in interest is worth it. In my numbers, because my HML offers 90% LTC it is worth it, because I can buy many more deals. So the 6-12 months of higher interest will pay for itself in more deals. In addition you can add that cost into your numbers calculation and make the deal pay for it.