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?
Thanks,
G-money
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.
Raj
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…
George
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.
Raj
Also it depends on the deal!