Funding First Deal with Personal Loan
Hello,
I've been researching some different strategies for funding my first deal. I haven't found a deal yet, or started looking for that matter. I've recently stumbled on a few forums where investors are using personal loans to fund deals. I have an excellent credit score, good income, and a low debt to income ratio. From what I have gathered I should be able to get a personal loan for up to 100k at 11%. When comparing this to a HML it seems like a no brainer. Although its a comparable interest rate I wouldn't have to pay any points. I'd be able to negotiate better seeing that I could pay all cash. I could keep using the money over and over after refinancing. Obviously it would be a higher monthly payment considering I would have to pay principal and interest. Is there something I am missing here? What are the downsides to a personal loan? Would it still be possible to take out a mortgage on a property with a 100k person loan? I'm concerned because I've never heard this strategy mentioned in any books, podcasts, ect.. I would appreciate any information.
Thank you, Donald Bryant