Originally posted by @Dan Valiente:
@Account Closed hmm, if you have to wait 3 months anyways with a private lender and take the hit of higher rate; maybe it is best to just wait the 6 month seasoning with conventional
I agree Dan if you are only going to have a small portfolio. The difference between private money and conventional is that private money does not report to the credit bureaus. Investors with large portfolios do not want 20-30 mortgages on their credit report. It makes it difficult to finance more properties and if I remember correctly, I think there is a limit to the amount of properties you can own under conventional programs. With private money, there is not. They typically set up as LLC's. Additionally they are no income verification loans and require substantially less documentation. Private money isn't for everyone. I haven't funded any conventional deals in a couple of years. It used to be 12 months seasoning for cash out on FNMA.
