Using hard money for first rental- implement "BRRRR" strategy?

[Jacob Desch]

Hi all,

I'm 24 and a newly licensed Realtor in the Cincinnati, OH area. It's a great market with a lot of opportunity but I have very little capital and would most likely not qualify for a loan from a traditional lender. I feel that I've educated myself enough over the past few years to confidently be able to purchase a rental. 

Is it a poor/too risky plan to use hard money to purchase my first rental? Is there value in waiting and using my own capital at least for the first investment? 

Best,

Jacob 

[Curt Davis]

Usually, when you get a hard money loan you will need to get out of it in a short amount of time so you will need a conventional lender to take you out.   If you do not qualify for bank financing you will not want to get a hard money loan. 

Good luck