BRRR and Hard Money

[Vincent Guerrero]

Hello, 

My name is Vincent, i recently moved to Raleigh, North Carolina and i want to start in the REI business.

I work as a network Engineer, and i have a decent income but i don't have enough employment history in the united state(I was in Dominican Republic since i was a teenager)  so i don't get a approve. 

After listening this today's Webinar it got me thinking about the BRRR rule an dhow to buy property from private lender and then refinance it with a commercial bank.

Should i use money from a Hard Money Lender to buy my first house, then when i have enough history use the bank and pay bank the lender? 

Thanks, 

[Jon Rylander]

@Vincent Guerrero

I would be careful doing that.  If you use a hard money lender to buy a rental and dont have the refi already set up it could bite you.  you could be stuck paying 10-15% interest on the loan and most hard money lenders only lend short term (6 months - year normally).