I’m missing something, right?

[Dominick Galinis]

Hey BP fam,

So, I'm in the home stretch to having the savings I want to get my first property. I'm going to be using a FHA loan for either a triplex or 4 plex.

I use Credit Karma to look at my credit score and they offer me personal loans through the app, usually for a stupid high rate (10%+).

now, for my question. I’m about to get my RE license. And the commission I would receive for representing myself would be more than enough to pay off that loan, and still have plenty left over. My family friend who’s been an agent for almost 2 decades is going to walk me through the “buying process” to make sure I’m protected on that side, and I know about it the area I’m buying in to make sure I’m getting a property  that will rent etc. 

I’ve heard of people getting private loans before, but never through one of those apps or whatever. And I’m concerned that I am missing something in my inexperience because it seems “obvious”, if that makes sense. Am I missing something here? Thank you all very much!

[Jonathan Greene]

Everything about this post is a lesson in what not do or what not to think. It's unlikely an FHA will even clear if you need to get a 10% personal loan off of a website for the downpayment. Are you even pre-approved yet? If you have no savings and limited income coming in, so much that you would need to take a 10% loan, the chances of approval are low right now.

Also, you should not represent yourself in your first transaction. One, you don't know anything about investing from this post. Two, you don't know anything about being an agent and aren't even licensed yet. So you want your friend to do all the work to help you and then you get a free commission to then pay back a loan? All you are thinking about is yourself and disregarding common logic and friendship.

Just getting your license doesn't make you ready to handle a deal, much less your own deal. That's like a newly licensed attorney representing themselves in a murder case to save money. Stop and reassess.