HARD MONEY FOR A RENTAL PROPERTY

[Jordan Santiago]

Hello BP fam! So I am in New York City, and I desperately want to buy my first rental property. I am 21 and my goal is to eventually acquire 1,000+ units. As everyone knows, New York is extremely expensive so I was wondering if:

1. Hard Money Loans for rentals are a good idea?

2. How do hard money lenders get their money back when lending on a rental property.

I would love all feedback, opinions, and experience from everyone, and if you want to connect message me!

Thanks so much BP! Happy investing. 

[Ben Stoodley]

Hey @Jordan Santiago,

Nice goal! I do agree with Scott though, hard money is typically not a good idea for rentals or anything long term (2-3 year max). What I see a lot of my clients doing is using hard money to take down the property quickly, make the renovations, raise the rents, then refi about 12 months later. This gives you time to find a solid bank loan for the long term with low interest rates. When you refi, you will cash some out too typically. It's referred to on here as the BRRRR method, highly effective!