All Forum Posts by: Mary K.

A. Only use hard money as a last resort and if it will fit with your numbers. You can get a regular mortgage and refinance and cash out in 6 months.

B. Doesn't matter, it's such a short time.

@Jeanysha Jean-Baptiste That does make it more difficult but I wouldn't let it stop you. Could you do a house hack instead? a small, local bank would be the best bet. I personally think house hacking is the way to go the first time around. The laws are different and more lenient when the property is owner occupied. 

@Terry Z. It sounds like you have made up your mind that this property is a dud and you can invest more wisely now that you have the experience. That is a bummer that you are going to be out $8k, however, in the grand scheme of things $8k is not that much. 

@Emily Lange Love it! Great plan.

It's great that you are planning. Your strategy will gradually change over time as you see what works better for you personally so don't stress about it too much right now. 

Go find that 3bd/2bath :)

@Damara Montaque

I think he means that you should only buy when some immediate equity can be made. Not sure if 20% is an exact science. 

It would definitely suck to buy at the peak of a particular cycle. That said... and IMO, at the end of the day, if the property you buy fits into your strategy and you have reserves, it doesn't really matter what the market does.  

@Bob Jones I agree with the other poster that a duplex, triplex etc are harder to find and not in that price range.

I think you could find a townhouse for around $150k and rent the rooms out. 

If you find a property and aren't sure how to run the numbers, post about it here and we can give you some pointers.

Good luck!

@Tim Buckingham  Why would you go hard money route? Is the property distressed? Have you considered a contruction loan with a bank and then refi to a conventional mortgage?

Another option is to get a line of credit either from a HELOC on your primary or an unsecured LOC and then refi to a regular loan when the property is in good shape.

Post about what the hard money lenders offer and the forum can tell you if they offer a fair rate.

@Tim Buckingham That is exciting! Congrats on this next step.

Any mortgage bank will do. I have personally used Eric Hopkins twice at Vellum Mortgage. He is a nice guy and can patiently explain to you all your options. His rates are very good and he can close in 21 days if needed (which is pretty fast for a bank).

Good luck!

@Nichol Sistrunk

I think when you start talking and asking questions to the Hard Money lenders you will get some clarity on the benefits vs risks. Ultimately they are only going to offer services on a deal they think is good.

I am not sure how wholesaling works but I am under the impression that you don't need funding. I think you are just finding a motivated seller, getting a subject to contract and selling it to an end buyer. Others can comment on that.

I will say that I see a lot of new wholesalers putting the cart before the horse. Go out and look for a potential house to wholesale, it's going to probably take you several months to find something worth wholesaling. Once you have it, you are gold. Don't waste time building a buyers list right now. Trust me, if you have a deal, you will find a buyer in a few hours. Focus on finding that property.

Get out there and look for that seller :)

@Account Closed Hey! great start, keep doing your research.

Hard Money- this is a business model and is a legit operation. Normally doesn't care too much about credit, income etc. They want to know the property is actually a good deal so that if you default, they can just take the property and recoup their losses. I suggest you google " hard money lender" and give them a call, let them know your situation. Post about this on the forum and we can let you know if they are trying to rip you off or be shady.

Private money- In your situation this means like your parents and friends lend their savings to you. If you had a good track record and could show some real results, strangers with savings could be interested in lending you their savings. There is a lot more to this when a stranger wants to lend- google private money- but know that this is probably not an option just yet.