I live in Sioux Falls SD.I am a mortgage banker and have been in banking for 20 years.  

I know it sounds like that is the thing to do but why do the bank favor when you can reinvest that needed money into more real estate!

And they all have different gigs and many are wildly successful.. my partner in our airplane for instance has a big underground contracting company 100 plus employees make huge bank.. and invest in real estate as well short term and long term.. and now started a container home building company LOL. 

Lastly, what verbiage do you put into the contract to inform the seller how much quicker this type of loan is and less stringent they are in terms of closing requirements vs traditional big bank mortgage?

The original idea was I didn’t expect a bank to lend her the 40k for repairs so I assumed she’d be using a hard money lender and I was just assuming at 10 yrs for the loan will full intention of having the property appraised after repairs, remortgaged through a conventional for 30 years at like 3-5% and paying off the hard money loan.

I questioned that when I read that but just figured I was just not yet aware of potential opportunities out there where you can get a bank loan for 90% of the cost (and pay PMI) or maybe bring in a partner or private investor to cover the other 10% of the 20% down payment to avoid PMI? 

I know of some portfolio lenders/small local banks in South Carolina that would agree to this as long as the total debt service (1st and 2nd mortgages) is still above a 1.25.

Or perhaps you could get a commercial bank loan and have the seller carry 30%? 

My rental business is only a year old therefore it seems I can’t get a bank loan before I get two years of tax return. 

The Calculator will automatically transfer any expenses you include in the cash flow analysis (loan payments, insurance and taxes).