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Does anyone know if certain places offer personal loans for investment purposes? Or any other routes I could take?
I assume the feedback will likely be to get an investment property mortgage. I have done this in the past, but in this situation (very cheap property) I only need a small sum of cash. So I think it makes the most sense to combine this loan with my cash to avoid closing costs, etc.
Anyways, I see on investment sites where folks have used a personal loan to fund the flip or rental. Most of those threads are from a few years. I have emailed or called most of the major lending sites and basically they all say their personal loans cant be used for investment purposes including rentals. I don’t know if people lie about the loan purpose (which i wont do), if the rules changed in the last few years (and I am wasting my time calling places), or if there is actually certain places that offer personal loans for anything. If so, do you know of any?
Does anyone know if certain places offer personal loans for investment purposes? Or any other routes I could take?
I assume the feedback will likely be to get an investment property mortgage. I have done this in the past, but in this situation (very cheap property) I only need a small sum of cash. So I think it makes the most sense to combine this loan with my cash to avoid closing costs, etc.
Anyways, I see on investment sites where folks have used a personal loan to fund the flip or rental. Most of those threads are from a few years. I have emailed or called most of the major lending sites and basically they all say their personal loans cant be used for investment purposes including rentals. I don’t know if people lie about the loan purpose (which i wont do), if the rules changed in the last few years (and I am wasting my time calling places), or if there is actually certain places that offer personal loans for anything. If so, do you know of any?
Appreciate it!
Maybe a credit union will do it. Just ask about personal loans and lines of credit. Note also that unsecured debt will have higher interest rates than secured debt.
Does anyone know if certain places offer personal loans for investment purposes? Or any other routes I could take?
I assume the feedback will likely be to get an investment property mortgage. I have done this in the past, but in this situation (very cheap property) I only need a small sum of cash. So I think it makes the most sense to combine this loan with my cash to avoid closing costs, etc.
Anyways, I see on investment sites where folks have used a personal loan to fund the flip or rental. Most of those threads are from a few years. I have emailed or called most of the major lending sites and basically they all say their personal loans cant be used for investment purposes including rentals. I don’t know if people lie about the loan purpose (which i wont do), if the rules changed in the last few years (and I am wasting my time calling places), or if there is actually certain places that offer personal loans for anything. If so, do you know of any?
Appreciate it!
I have a relative who is a real estate investor, who gives short term loans to flippers. Perhaps you can find someone like him in your area.
The way he explained it to me:
He evaluates the property you are going to buy. If he sees it as profitable, he will loan you the money to buy it possibly even the money fix it up, depending on his valuation of the property. You usually need to put down some of your own money on the property on your own.
It is a 1 year loan at 15%. You pay 1/12 of the interest payment each month. When you sell the house, you pay off the loan in full. If you miss any interest payments, he gets the property.
It is a win/win for people that have no other way of financing.
I have a relative who is a real estate investor, who gives short term loans to flippers. Perhaps you can find someone like him in your area.
The way he explained it to me:
He evaluates the property you are going to buy. If he sees it as profitable, he will loan you the money to buy it possibly even the money fix it up, depending on his valuation of the property. You usually need to put down some of your own money on the property on your own.
It is a 1 year loan at 15%. You pay 1/12 of the interest payment each month. When you sell the house, you pay off the loan in full. If you miss any interest payments, he gets the property.
It is a win/win for people that have no other way of financing.
Have many people defaulted? The interest rate is so high I would believe he is the last option for folks.
Have many people defaulted? The interest rate is so high I would believe he is the last option for folks.
He said only once in a while. He told me it is more profitable if they default. He is very good at analyzing the numbers before giving the loan. Then he flips the property himself.
He also takes investors and pays them 12% on their investment.
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