Obtaining Unsecured Loans

[Marcus Wright]

For 2023, I'm thinking over a few ways to add more assets to my growing portfolio. Ran across the thought of obtaining an unsecured loan to help assist in my growth. The lenders mentioned the loan would be in my personal name using my personal credit score which would add to my DTI & possibly drop my score as well. 3/4 of my portfolio isn't traditional meaning most were financed using commercial loans, private money or DSCR and I would more than likely utilize the same options moving forwards since they allow me to purchase within my entity.

I love to group think so has anyway had any experience building their portfolio in this fashion. Any other options that may work as well when there’s plenty of deals but lack of funds. Any pros or cons that may come to mind? Thank you in advance.

[Chris Davidson]

@Marcus Wright stress test it before pulling the trigger. Nothing wrong with taking on more debt, but if you overleverage yourself to the point it could blow up your portfolio was the "growth" worth it? REI is a slow game that takes patience. You can speed it up with leverage, but you can also blow it up.

Could it be better to see what DSCR options are out there and maybe you refi with a higher rate but lower payments with interest only, or you can pull some funds out at a rate better than an unsecured line. Do you have private money looking to invest more?

Before I go looking at new sources of capital I like to assess my current capital and see if it can be optimized. 

Best of luck and keep crushing it this year!