Is hard money lending a good way to finance a rental ?

[David Garzon]

Hello BP community, I need some advice on how to finance my first deal. I have a general location in my city that I want to invest in. The properties in this area are great investments since they are not in the best side of town, yet there is a high demand for renting (it’s right next to a university). Just so you guys get a better picture, the houses are selling for around 120k for a 3BD 2 BR and each room can rent out for around $700. I am eager to get my hands on one of these deals, but it is very hard for me to get a loan from a bank. So my question: is using a hard money lender a good way to finance a good rental property deal ? I am aware of their high interest rates and their short terms, but I was thinking I could refinance with a bank after 6 months? Would love to hear some ideas/advice. Thank you for your time.

[Michael Lee]

Consider asking for owner financing.  They might consider spreading out there income.  if they need some cash,coffee them teio notes with one due prior to the other which will lower your debt service.  You might consider a cash rich Partner.  There is also Private Money Lenders that may be short term or long term.  Good luck!