Hard Money Loan to Conventional Loan Strategy

[Brad T.]

Hi Everyone,

I have been listening to the podcasts from Lifestyles Unlimited. Their main strategy for buy and hold is to purchase houses and fix them up with a hard money loan and then convert the loan into a conventional loan. They do this to roll the repair costs into the conventional loan. What are your thoughts on this? Seems to make sense if there is a decent amount of repairs needed on the house, otherwise, the closing costs would cancel out the benefit.

Thanks!

Brad