Hard money or commercial loan?

I have an REO that I can purchase for ~70% of FMV. It needs cosmetic repairs. I plan to do the repairs and then resell it. I intend to do this with several other REOs in my area.

Can I get a typical NOO commercial loan if I plan to resell in 6 months? Do commercial lenders have a problem with someone going through loans that quickly? Can anyone direct me to a list of commercial lenders that would be friendly to this situation?

Is a hard money loan the better way to go? The main problem I have with the HML is the lower LTV they will lend.

Any suggestions?


You will be very hard pressed to find a commercial lender who does not have some sort of pre-pay. Why not use hard money for such a quick turnaround time?

I agree with Christopher - hard money is the way to go on this kind of deal.

If your credit scores are high enough you could qualify for business line of credit or a line of credit against the property. It is alot cheaper than hard money. You pay the fee for business line just onc

Thomas Bryner