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Updated almost 5 years ago on . Most recent reply

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Kevin Christensen
  • Rental Property Investor
  • Delaware, USA
48
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43
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Hard Money for a buy and hold??

Kevin Christensen
  • Rental Property Investor
  • Delaware, USA
Posted
One of the strategies I’m considering is using hard money to pick up a 2-4 unit property so that I can get more properties with the available cash we have. Assuming 10-12% makes sense, is it normally done to use hard money and then refinance the property around 6-12 months in to pay back the hard money? Thanks!

Most Popular Reply

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109
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Greg Miller
  • Investor
  • St. Louis, MO
77
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109
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Greg Miller
  • Investor
  • St. Louis, MO
Replied

This can be a good strategy when first starting out.  Just make sure that you fact the interest costs in your calculations up front.  I would first meet with a local bank to understand the refinancing part.  You should know the entire process from beginning to end prior to moving forward.  Signing up for the hard money loan is the easy part.  You do not want to be a situation when you are figuring out the refinance steps after the hard money is in place. 

One wonderful idea is to ask a local investor that has executed this strategy previously. 

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