Mark: I got one from Steve. If I use hard money and gap it with private money can I still collateralize the private money with the house if the hard money is already collateralized with the house?

Justin: Sure. It depends on your hard money lender. We have a hard money lender that they make us sign, someone signs something, I forget what it is. But, yeah, it’s called a first of a second so the hard money lender is always going to want to be, almost always going to want to be, in first position and then your private money lender can be in second position. You just want to make sure that you’re watching out for you’re private lender. You know, don’t put them in an over luggage position where they’re lending more than what the house is worth. Hopefully you’re not buying a house in that situation. But we just try to keep their values low. So, yes, absolutely.

Mark: Cool.

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The post HF Q&A #13 – Can I use both Hard and Private Money to Buy a House? appeared first on House Flipping HQ.