FIRST TIME INVESTOR GUIDANCE

[Carolina Campbell]

Hi BP Community! Since I've signed up for this website, I've visited it quite a few times and read a couple of forums. It's been very insightful and I finally found the courage to post. I'm in the process of researching and gaining as much knowledge as I can. I just started my business (LLC) and I have to two other partners. We're looking to see which strategy to use btwn fix and flips and rentals. My goal is to find a lender that can guide us which direction to take. I also wanted to ask the following:

1. Do lenders have a preference as to how they lend their money to investors? Would they choose a fix and flip over someone looking to finance long term? 

2. Is using hard money the easiest way to get a property? (We don't want to put too much cash down & we cannot do FHA or hack it)

3. What are some lenders you used for your first property? 

4. Lastly, if you had the chance to do your first purchase over it again, what changes would you make, if any? (I already have mine, not buy your single family home as your first home 😂😂😅

Thank you in advance!!! 

[Odie Ayaga]

Welcome @Carolina Campbell! The first thing I'd do is break your questions out into separate posts. When people see multiple potential complex answers they're less likely to respond. Hard money lenders prefer to lend on fix and flips, banks prefer to lend on less risky ventures. If you're looking to fix and flip hard money is a good place to start looking and if you're looking to do rentals I'd start talking to banks.

Also I think you may have put the cart before the horse as I think it's beneficial to know what you want to do in real estate before forming and paying for an entity that may not best suit your needs. With 3 members there's a lot that can go wrong and it's easier to dissolve or get out of something like a joint venture than an LLC. Best of luck to all 3 of you and keep us posted how it goes!