HARD MONEY for a Multi-family house hack

[Laura Dantel]

I know it's Christmas Day, but my mind is still focused on my first property 24/7 =)

I have a pre-approval for a 203k loan ($425k), I have a licensed contractor, I know some wholesalers, and I have a down payment; but I am having a HARD time finding a DEAL in the Philadelphia area. I keep getting outbid by cash buyers =(.  I know hard money lenders do not lend on single family primary residences but what if it is a duplex and I am living in one unit and renting out the other as an investment? Is that still considered a primary residence? Any advice?

I am racking my brain on trying to find ways to get an off market deal!

[Derek Dombeck]

The reason most hard money lenders won't fund any property that you are living in has to do with foreclosure laws in your state. Where we lend, I can foreclose in 3 to 4 months on a non owner occupied commercial loan. If the borrower lives in the property, its considered a consumer loan and it could take over a year to get a foreclosure done. Most of us are not willing to risk it.