Buying an investment property with hard money requires an exit strategy out of the hard money loan….

Hard money is expensive, and if you haven’t planned ahead for refinancing, you can find yourself in a pinch between a rock and a hard money loan.  If you plan to hold as a rental, you should have your end financing lined up before you buy the property.

This means you should identify commercial end lenders with short seasoning time requirements. You should also know your credit score and get prequalified by your lender of choice.  Finding out you can’t get financing after you have already bought, rehabbed and rented a 4 unit property is a recipe for disaster.

Besides a mortgage broker you trust, try local banks and credit unions, as in this credit challenged environment, portfolio lenders are more likely to be flexible enough to meet the needs of investors.