Private Money and Hard Money Lenders

[Yengkong Sayaovong]

I already have 2 homes. A single and a duplex. I bought the single home with a traditional mortgage at the time because I didn't know about PML and HML yet. The duplex I paid for in cash.

I'm looking to purchase another investment home now using PML. I'm wondering if I still need a down payment with PML and HML? Also is there a percentage I pay them from the deal regardless if it's a buy and hold or fix and flip? Or am I being charged interest on the loan?

[Dan Gamache]

@Yengkong Sayaovong With a private lender you will generally need a 20-25% downpayment to purchase an investment property, and can get 30 year products (fixed or adjustable) on 1-4 unit properties. In this case since you own the duplex free and clear you could do a portfolio loan and use the equity in duplex you already own as the downpayment. You will prob be looking at rates in the 5's for an adjustable and high 6's for a fixed with 1-2 points in origination. No income verification as the loan is based on cash flow of the properties.