Hard Money or Conventional?

I am new to REI, but I am currently searching for my first purhcase. MY question is once I find my first one, what would be my best option to finance this property? Should I go through a Hard Money Lender or should I go with a Conventional Loan? Any advice I can receive from experience REI’S would be greatly appreciated?



That depends.

Where are you financially? What is your credit score? What conventional type loans are available to you? How fast do you plan on closing?

Hard money is a good backup if needed. It is also good for the “credit challenged,” or if you’re wanting to make offers with 7 day closings. However, if you don’t need to use it, then don’t. It’s very expensive money.


Credit wise I’m ok. Financially I trying to get there. I going to sell a few things and then get a land loan of about 11K on some property
I bought at a tax sale.Which should be enough to get me going.

I haven’t found my anything yet, though I am currently looking at HUDS and Foreclosure listings. Thank you for you advice…


By financially, I meant more debt to income ratio. Do you make more money than you have in bills every month?

If you have a good DTI ratio and fair to good credit rating, then it’s a safe bet to go conventional, especially for your first few props.

If you haven’t already, I’d suggest trying to find a good, local, preferrably referred mortgage broker that will get you pre-qualified for the price range that you’re interested in buying.


Also it depends on the deal!