Is this the right method to finance

[Fallon Gilbert]

Hey All,

Based on a lot of the feedback from everyone on here, I've gotten a lot of great information and some more direction on what I should be doing but I want to make sure this makes sense.

I'm planning on buying some properties in PA which have purchase prices below $100k which is typically the minimum threshold for a lot of lenders. I have some cash that I was planning on buying a property first to refinance later. My question is, does it make sense to purchase with what cash I have first, then take out a personal loan to purchase 1 or 2 more properties and then refinance into a portfolio loan? My goal is to get these under a DSCR loan under an LLC but I'm unsure if this would be the best method or if there's something I'm missing.

Thanks!

[Edward Stephens]

@Fallon Gilbert great question.  First, I wouldn't worry about "what the threshold is for a lot of lenders."  Find a good lender that wants your business and they'll come through for you.  Sometimes they'll do it b/c they have a relationship with the agent involved.  Ask your agent to come through for you on this...it's their job.

I would recommend putting  the minimum down to buy the property (probably 20%), and then saving the rest of your cash for the next property.  In this case, I would avoid personal loans if you can take a loan against real estate, because the interest rate you pay on a personal loan will (almost always) be higher than a loan you take against real estate. 

You could put each property into it's own LLC and if you get an attorney they can do that for you after closing.

What are you trying to achieve by getting all of these properties into one loan?