Insight on obtaining Buy and Holds using private or hard money loans

[Michael Baradell]

Hey Guys,

I am curious on how purchasing a buy and hold property using private money or hard money loans is structured? First, what is a typical rate to offer the lender? Second, what should the terms be? I am under the assumption that you would refinance ASAP in order to pay off the original lender. Is this correct?

[Mehran K.]

@Michael Baradell I highly suggest you get qualified for the refinance with your particular lender BEFORE you pick up the property with a hard money loan. You don't want to get stuck in a bad situation if you come to find out you don't qualify with your lender to refinance.

You could take on a credit partner that will be able to take the refi loan out in their name as a last resort.

Basically, be sure of your exit strategy before going in :)