Investing in St. Louis

[Nick May]

Hello, I am in the process of starting to invest in real estate in St. Louis and am looking for some guidance. I have a partner in this venture and would like to know the best way to go about getting the best financing. I am a CPA and my partner is a construction project manager. His dad is willing to invest an initial down payment to get us started. We are trying to find the best initial route as well as a continued relationship with financing in order to provide benefit to all parties involved. We both have great knowledge in our specialized areas to create a great partnership. Any advice or suggestions would be greatly appreciated. Thanks!

[Lawrence E. Hopkins]

@Nick May  Hard money is a viable option for investors who are starting out and/or who do not have the funds to purchase and rehab out of pocket.@David Ounanian  You are right.  Hard money is typically easier to acquire as most banks will only provide 75% of the purchase amount for an investment property and 0% of the rehab which will require a large cash infusion in a particular project.  But hard money is typically more expensive because of the risk taken on by the lender.  Typical hard money lenders (also they are all different so beware) will lend 100% of the purchase and rehab up to 70% of the After Repair Value which will allow an investor to only  bring closing costs to the table!

If you have any questions, I would be happy to go over the pro's and con's of hard money from a conceptual standpoint.