Getting a personal loan for my first investment property

[Khayla Williams]

Hi everyone! I'm looking to purchase my first investment property in the Columbus or Cleveland area.

I don't have money for the down payment so would it be okay to get a personal loan? I want to do long-term rentals to section 8. 

Also with the brrrr strategy will I get a DSCR loan to pay back the personal loan?

I am just starting out so any help will be greatly appreciated!

[Chris Seveney]

@Khayla Williams

I strongly recommend against borrowing 100% for a property

There is significant risk in owning real estate including section 8 and maintaining the home in a certain condition and if you do t have the funds for those repairs you could lose it all.

I always recommend people budget and save enough for a down payment and reserves before getting into their first property. It doesn’t matter if you start at 22 or 42 there is time which is your best friend in real estate to grow your net worth

[Remington Lyman]

Quote from @Khayla Williams:

Hi everyone! I'm looking to purchase my first investment property in the Columbus or Cleveland area.

I don't have money for the down payment so would it be okay to get a personal loan? I want to do long-term rentals to section 8. 

Also with the brrrr strategy will I get a DSCR loan to pay back the personal loan?

I am just starting out so any help will be greatly appreciated!

 You need one of three 3 to invest. Time, Money, or experience.

Sounds like you do not have money. I assume you do not have experience, but correct me if my assumption is wrong.

So time! Start cold calling and find an amazing deal. Then call me and we can partner on it

[Anthony L Amos Jr]

Quote from @Khayla Williams:

Hi everyone! I'm looking to purchase my first investment property in the Columbus or Cleveland area.

I don't have money for the down payment so would it be okay to get a personal loan? I want to do long-term rentals to section 8. 

Also with the brrrr strategy will I get a DSCR loan to pay back the personal loan?

I am just starting out so any help will be greatly appreciated!

There are lending options for this, but I don't recommend them for a newer investor. They are usually high interest short term loans that will have to be included in your analysis of the property to ensure you're making a good decision. 

Partnering with an experienced investor is best when you don't have money and experience. You can find the deal and work out an agreement with the experienced investor.

[Nathan Gesner]

Quote from @Khayla Williams:

Lenders typically won't allow you to borrow money for the downpayment. That's what everyone was doing 20 years ago and it resulted in a housing collapse.

If you borrow 100%, you are over-leveraged and at risk of failure. And if that property fails, it puts your personal finances at risk, as well.

Increase earnings, reduce expenses, save money, invest. That's the formula for success.

[Jonathan Greene]

1. Never mention Columbus in an open forum. If you do, 13 years from now, you will still be getting replies here about working with someone in that market.

2. If you don't have enough money for a down payment, there is no way you should be buying a home. And don't look at downpayment assistance programs because they all have a catch. Just earn and save until you do.

You are in a rush to own double debt, and that's not a wise decision.

[Jimmy Lieu]

Quote from @Khayla Williams:

Hi everyone! I'm looking to purchase my first investment property in the Columbus or Cleveland area.

I don't have money for the down payment so would it be okay to get a personal loan? I want to do long-term rentals to section 8. 

Also with the brrrr strategy will I get a DSCR loan to pay back the personal loan?

I am just starting out so any help will be greatly appreciated!

Hi Khayla! Down payment isn't the only expense you're looking at. It can put you at a higher risk of foreclosure if you face an unexpected vacancy or repairs. My advice is to try to increase your current income, focus on saving, and build your credit. Happy to connect and answer any questions you may have.

[Nicholas L.]

@Khayla Williams

can you save up until you have enough to house hack, and start with a house hack instead?  not everyone's lifestyle or family situation permit but it's a great way to get started.

and i agree with the others... 100% leverage is very risky.  the market is pretty unforgiving right now.