Noncollateral loan - too good to be true ?

[Mian Rizwan]

Came across a non collateral loan offer ( work as a physician and got a letter from a firm offering 50 K -200k for personal / professional use). Was Offerred rates of 5-6.5% after few phone calls, with early return penalty for 3 yrs etc and company was willing to transfer money to my account in 1-3 days ( it’s not a line of credit)

Thinking of using this as a down payment for my next deal, but it took me 4 months to find my last deal. How should I play my cards ? Is this too good to be true ?

[Don Konipol]

@Mian Rizwan Actually people in certain professions and people above certain thresholds of income or credit score do get these solicitations all the time Often, but not always, the rates quoted are introductory rates and may be good for 6 months - 18 months. Years ago I received an offer for ‘up to $200,000’ signature line of credit at a very attractive rate. I applied, did indeed receive the $200,000, and invested it in a high yield mortgage loan, earning about a 8% spread ($16,000 per year) over a 4 year period. When interest rates came down, and the spread was no longer attractive, I had heard the lender was having some loss issues. I offered an immediate payoff for a $50,000 discount, and was able to negotiate a $32,500 discount, with the provision of no negative report to the credit bureau. About two months after the payoff, I received another offer from the same lender, offering $200,000 at a reduced rate of interest since I was a ‘preferred’ customer. People with bad credit are penalized by the availability, amount, and cost of capital. People with good credit are rewarded with same.