6-plex financing.. hard money??

[Nick Monge]

I have a wholesaler with a 6 unit. Asking price is 150k. It's in a good area. They're efficiency units that rent for $550 each. Each unit needs work, about 50k total.. rents will be more at 650 each after reno. ARV will be between $245-$265k... can I use hard money to fund it and then refi with a commercial lender??

I guess I’ve just never heard of someone using hard money in a commercial property..

Any input is appreciated.

[Charles Carillo]

@Nick Monge

Hard money or a bridge loan is a great option for this property. If the renovation was less expensive I would suggest obtaining permanent financing from the beginning but since you are adding considerable value, you may be able to extract a good portion of your initial down payment and renovation funds. I would speak to both hard money lenders and bridge lenders. Before you agree to any financing for the purchase, make sure you have your permanent financing setup for 12-18 months down the road. This will minimize any surprises with seasoning, refinancing terms etc.