Offlinewould a turnkey rental property using a hard money lender for funding a good idea for bringing in immediate income before venturing into other aspects of real estate.
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first time investor is this a good idea?
Posted on: Mon, 02/06/2012 - 16:45
Candace, you'd have to share specifics for anyone to respond. Purchase price, rental income, taxes, interest rate and term, down payment etc. Is the hard money lender (HML) the same person selling the property? What do you know about the title on the property? What kind of neighborhood is it in? What do you know about the area and the rents in the area?
These are the questions you answer for yourself to analyze the property's potential. With this info, the DG family might be able to offer their two cents worth.
BTW, please fill in your profile. You can get to it by clicking on My Account on the left hand side of this page near the bottom of the Main Sections heading.
Good Luck, and peace,
Dana w/ Crossroads Solutions LLC
http://www.DanaLeigh209.com
http://www.DanaLeigh209.net
http://www.ULostThis.com
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I am direct to the VP of a $100 million dollar open-ended debt and equity fund which actively writes checks to fund businesses with an EBITDA of at least $1 million a year. We fund also have access to up to $500,000,000 for the purchase of distressed real estate, specially commercial $7,500,000 and up.
I agree, it depends on many factors. If you can buy it with hard money and still have a positive cash flow, go for it. However, be aware of your hard money term. You will need to speak with a lender from which you will be able to obtain a long term market rate income property loan to discuss the seasoning term. If you can have a positive cash flow and then keep the loan long enough until you can refinance into a better rate note, you will be fine. You will then increase your ROI.
I agree with Dana! Be responsible and smart in your decision, share some details so others can give more specific advice, do your research. If the NUMBERS work, and work well for you then, well what are you waiting for !!