Hard-Money Lender explanation?

[Mitchell Mahnken]

Can anyone explain to me the concept of using a hard money lender on an investment property? If someone wanted to purchase a condo in a beach town and had X amount of dollars to put down but that amount was not enough to cover the cost of a conventional mortgage down payment. Can you have a hard money lender cover the rest of the down payment? Or do you have to have the hard money lender finance the purchase price minus the amount being put down by the investor? Any advise on this would be a great deal of help. Thank you! 

[Steven Goldman]

Hi Michell: So you will need he necessary down money to purchase the vacation property regardless of whether you use bank financing or funding company financing. Your skin in the game can not be financed with a bank or funding company. The general rule is no second mortgages. 

If you do not have the down money, loan and closing costs you can always find a JV partner. As I have said many times on BP it is easier to find money than a good deal. Good luck!