Personal loan for 2nd property purchase???

[Chad Jackson]

I am looking at different ways to invest in a second property. I am mainly leaning towards doing a HELOC.

Has anyone done a personal loan to receive finances for a 2nd property?

I need about 15k

Any advised is greatly appreciated!

        Thank You!!!!

[Andrew Postell]

@Chad Jackson it's pretty hard to find any loan type that will allow a personal loan to secure a piece of real estate. In order to do that you would have to take out a loan, season it in your bank account for 60+ days, make sure that the payment doesn't affect your DTI to make you not qualify, and then actually find a lender who is willing to give you an unsecured personal loan that large.

Now, using a HELOC is a different story. A HELOC is a loan that is secured by a current piece of real estate that you own. That is permissible with most loan types. The trick is of course that you need to have a piece of real estate with enough equity to get a HELOC on.

Also, just to clarify something here - a "secondary" home is a property that you purchase and occupy part of the year.  Like a vacation property.  A lake house or beach house that you visit and occupy for "part" of the year.  "Part" is not defined but you cannot rent it for 12 months out of the year....because other wise you won't occupy it for "part" of the year.  I'm bringing this up because this property type only needs 10% down + closing costs to purchase.  

Also, if that is still out of reach a lot of us rely on the BRRRR method to secure properties. Might want to look into that technique to see if that fits you a little better.

Hope all of this makes sense.  Thanks!