Private money and hard money - 100% Financing - Questions

[Jay Jonez]

Any one that’s used this strategy of using hard money and private money on a deal. I would love to hear your experience with that and the process.

- currently I have a flip with a private money lender who lenders 75% Purchase price 50% Rehab. Which is fine but I’m working on buying another property (but I would have to wait to sell that property to buy another ) .

So I’ve been researching I can use hard money as the 1st lien and use hard money for just the down payment portion to make it 100%.

[John Fossetti]

I have some clients that will use this strategy. They will use us for the 1st and either JV or get a private loan for the Down Payment. It's common when they have a family member loaning them the rest. I'm not 100% sure but I believe they usually pay them back a set amount when the property closes or if it's a private money person typically you'll pay higher points on the 2nd because it's not secured.