Finding Long Term Hard Money Lenders with No money down

[Andres Harrison]

Hi Bigger Pockets community!! I recently found a great investment REO multi family unit building that is in relatively good condition (from the outside at least) and although it is an REO, there are tenants still in the building. I wanted to know if there was a way to obtain a long term hard money loan with no money down. Is this just a fantasy? Or does this really exist?

[Jon Holdman]

Yes, what you want is a fantasy.

Hard money rates are double digits. Can you deal really sustain 15% interest payments?

Hard money is typically 6-24 months max.

What you might try to do is buy with hard money, fix, rent and refi. But you will still need all the usual credit, income, and reserves requirements. And realistically, even in this case you're going to need some of your own cash. Perhaps less than with conventional where you're looking at 20-30% down plus rehab costs out of pocket. But buying a rental with no money down? Only with owner financing. And that doesn't work for REOs.