Using alternate sources of Funding for deals

[Ryan Cameron]

I was just kicking around this idea since watching a video last night.

Using lending sites such as lendingclub to finance my next deal.

Pros:

-easy application process (takes about 2min online)

-turn around time (could have funds in your account within 2weeks)

Cons:

Higher interest rates

I am seriously considering trying this, even at a higher interest rate, I could easily re-fi the property in a year for a lower rate. And I could still be cash-flow positive even at the higher rate

Please share your thoughts on this method of financing

[Brie Schmidt]

I haven't used this for financing but when our rehab got away from us I took out 20k to pay for it (through Lightstream) I think I applied on a Thursday, got the conditions back from them Friday and sent in the docs they needed, Saturday we were approved and Wednesday we had the cash.

Overall the process was super easy. I will note they they still do a credit check and still require bank statements, paystubs, ect just like a loan would.