Private/Hard Money Lending

[Jamael Reed]

Quick question..

Can a investor use private/hard money loans to buy a house to live in?

Has anyone done it before?..

[Jacob Blackett]

Hey Jameal, most hard money lenders will not work with you if your plan is to live in the property. By most, I mean that I've never run into a hard money lender interested in that situation. 

However, that doesn't mean it's impossible. For example, I bought & renovated a property with the initial plan to sell it immediately after renovation- your typical flip. I borrowed money on the deal from a hard money lender. After renovation, I decided that I wanted to live in the property. So I worked it out with the HML and ended up getting a refinance loan from my bank to cash out the HML lender 6 months down the road- I offered him 3 pts on the loan balance to work with me on it.

So... if you have an exit lined up for the HML, then they are typically all ears, you just have to sell them on your ability to execute.

Happy investing- Jake