First Deal under contract - looking for advice on Hard Money loan

[William Strehse]

I have my first deal under contract. SFH purchased for $25K in Clifton Heights, PA. I am estimating the Rehab cost at just over $50K. We are using our own funds for the purchase price and closing cost and have funds for the Rehab but would like to borrow those funds instead of strapping us. The home will be a Hold and should rent for approx $1,200 a month. Our goal is to rehab, fix and then Refi and pull our borrowed money and the majority of our initial investment back out. ARV I am estimating conservatively at $110K so we should be able to Refi at $70-75K.

[John Leavelle]

Howdy @William Strehse

Congratulations.  

If you are wanting to do a Hard Money Lender purchase and then Cash-out refinance (commonly referred to as the BRRRR strategy), then, I would recommend you use as little of your own money as possible. Hard Money Lenders should be able to finance the purchase and Rehab together.

Check the BP menu.  Go to the Market place.  Then click on Hard Money Lender.  Find your state and it will give you a list of Lenders in your area.

Contract the lenders and see what their terms are.  Shop around to find a deal you like.

Also if haven't already find the bank lender you are going to use for the Cash-out refinance. Get pre-qualified (or even pre-approved) to find out what type of loan you can get (amount, terms, APR). It will help your analysis of Cash Flow for after the refinancing.

Hope this helps.  :)