Using a Hard money lender

[Rickey Smith jr.]

Hello I have a question for everyone out there that has used a hard money lender. If I where to use a hard money lender to cover the %20-30 down payment rule on a condominium would that be a good move? After that I’d financed with a normal lender for a mortgage on the property.

[Erik Hatch]

Depends on the term. What do you plant to do with the condo?

[Jay Hinrichs]

Hml do not make second position loans like your describing that's a waste of time .

you need an equity partner and that is usually an individual.. and usually from your warm contacts , family , friends or new friends you meet at a meet up.  Keep in mind its the people with the cash that bring the value.. 

[Rickey Smith jr.]

Okay Thanks for the advice Mr. Hinrichs

[Rickey Smith jr.]

Mr.Hatch what I have planned to do with the condominium is use it an investment property. It brings in well over 6 figures a year. I would use all income to pay back the Hard money lender in the time spand the lender provides. Seeing as it is a second source of income I don't need it as  my money intill the debt to that lender is paid. After that is completed I will look to expand my portfolio by buying into single family houses each year utilising brrrr method and land lording houses are significantly cheap in my home state and re selling would just bring fourth more profit through value of appreciation.

[Chris Salerno]

Originally posted by @Rickey Smith jr.:

Hello I have a question for everyone out there that has used a hard money lender. If I where to use a hard money lender to cover the %20-30 down payment rule on a condominium would that be a good move? After that I’d financed with a normal lender for a mortgage on the 

Hey rickey, I hope all is well. 

Normally private money lenders won't hold a second position. If you have built a strong relationship with them they might. I would say like some people said you should raise money from 1-3 people depending on the amount. Make sure you contact an SEC attorney before anything to make sure you're doing everyone correctly in my opinion. 

[Ned Carey]

A hard money lender will not loan you money for a down payment. Both the hard money lender and the traditional lender will want to have their loan in first position as @Jay Hinrichs says.