Asset Based Lenders

[Angeline Mentor]

I need advice.  I may have shot myself in the foot.  I recently took out a personal loan of 100K  (unsecured) to fund my real estate investments.  Well, I now have down payment, closing and gap funds.  You would think this is great news. 

I just recently signed a contract for a two-family house in NJ. I spoke to two lenders about the property and provided general information. They said it sounds like a good deal. They will need me to be a personal guarantor. My heart nearly stopped. I thought I could buy my investment properties under my LLC and a credit check would not be necessary. The loan would be based on the asset.

Well, now I am not sure what to do. My DTI is of course, over whatever they require due to the personal loan and my other bills.

I am also concerned with the refi out, If I get a hard money lender, How do I refi out of the loan. My goal was to do the BRRRR strategy with this property.

I appreciate any feedback you may have. 

[Stephanie Medellin]

@Angeline Mentor This is the perfect scenario for an asset based loan - you can hold title in an LLC and your DTI is not a consideration. The property must cash flow based on market rents. There is still a credit check but your other debts will not hurt your chances of purchasing.

Are you concerned about refinancing after the property is repaired?  What kind of condition is the property in now?