Hard money lenders for your first property?

[Julio Velazquez]

Hello BP,

Would you recommend a someone new to Real Estate to use a hard money lender for their first purchase ?

[Greg Dickerson]

Originally posted by @Julio Velazquez:

Hello BP,

Would you recommend a someone new to Real Estate to use a hard money lender for their first purchase ?

I would not recommend using Hard money on your first deals. Its very expensive and can put you negative real quick if you do not get in and out of the project fast. You really need to know exactly what your doing and have a lot of experience rehabbing houses. Most people underestimate the costs, time it will take and the ARV.

Before attempting to use HM make sure to educate yourself on the business, the market, rehab costs in your area etc. Its not a difficult business but theres a lot more to it than it looks and a lot you need to know if you are just starting out.