Purchasing 1st Property-HML,Conventional, or Private Lender?

[Steven Mason]

I'm not sure which approach to take at the moment. I have looked into many HML's and that was the route that I was going to pursue until I finished a 45-minute conversation about 10 minutes ago. Now I'm leaning more towards Conventional. I would like to know what my fellow BP member think and if anyone has any referrals?

[Mike DeBuccio Jr.]

Hey @Steven Mason,

The problem with going the conventional financing route is that the banks will not lend on distressed investment properties. They simply won't pass their necessary requirements and inspections. Also to my understanding, they don't work fast enough to fund an investment property, but obviously that would depend on the situation.

This is why investors usually use hard money or private lenders to fund their investments. The obvious catch is their high interest rates and terms, but they are able to do this because investors usually cannot get conventional loans for properties. Kind of leaves you with limited financing options. 

Hope you found this helpful!