Hard Money Lender? Yes or No?

[Nayeli Sanchez]

Should we a hard money loan to get a wholesale deal? Then try to refinance it after rehabbing? Does anyone know if banks will be strict to refinance the loan? I feel having another home loan we may not be able to get approved...

Thing is we don’t have full cash yet to buy a home out of pocket but credit is 727. Best deals I have seen are from wholesalers since we really want to start with one 110k and under.

[Kerry Baird]

You could always ask a local lender, “With my FICO here, debt to income ratio here, how much could I qualify for on an investment mortgage?” Determine your expected rents, for which a bank will typically give you credit for 75% of market rents. The concern is: Do you have the income/cash flow to support the refinanced payment.