Conventional loan plus private money ??

[Jesse Barahona]

Would it be a good idea if I would to purchase a Home under a conventional loan and seek out a private money lender to help fund the Rehab cost ?? Has anybody else used this strategy ? Or is there a better strategy for somebody wanting to get into the fix-n-flip business ?

[Bill Plymouth]

Hard money is expensive.  The rates in my market are 12-17%.  You can usually get private money for around 6-10%.  The only issue with private money is that you need to know or find someone with the capital to front your project.  

If you use private money, make sure they get taken care of before you do regardless of outcome.  This will allow you to borrow from them in the future even if you’re deal goes sour.