Personal Loan for Flips and Down Payments on Rentals

[Toure Smith]

Hey gang! Hope all is well for everyone. Like the title says, my question is about using personal loans for flips & down payments. I’ve read a few older posts on this subject but I wanted to ask again for reference and extra questions that may rise. Other questions are, 1) am I able to refinance out of the personal loan and 2) what are the odds of getting a private/hard lender while using the personal loan as the down payment. Thank you and happy holidays.

[Jacob Sampson]

You can certainly finance out of a personal loan assuming the property appraises for the right amount.

I haven't ever used a hard money lender so i can't speak to that.  My guess is they will be more interested in your ability to flip a home successfully.  

My suggestion is to just work and save up cash.  The more fancy you have to get to make a deal work the more risk you are taking on.  Lastly, remember risk in real estate is different than risk in the stock market.  In the market you can only lose what you put in.  In real estate you can lose MORE than you put in.

Grind it out and save up excess cash.