All Forum Posts by: Aaron Reeves

I'm a Real Estate agent in Boise, Idaho and about to get out my first offers on homes to BRRRR. Does anyone have a go to contractor in the area? Not doing any major structural work, just some walls, electrical cleanup, furnace replacements, roof, kitchen cabinets, and carpet/paint aesthetics.

Also, any other investors in the area I’d be happy to connect with and talk strategies in the Boise area!

@Aaron Reeves

Accident hit post mid sentence there. All pre-approvals were under 10% if I made the loan duration long enough (5-7 years). I’d pay it off in 6-12 months and there is no early pay penalty.

@Terrance J.

Hi Terrance, just pre-approvals online but through lending tree, lightstream, and SoFi. We’re all around

@Kurt R.

I’ve been looking into this the last few days and spoke with my local credit union. They said no problem using it to pay cash for real estate! Also called a few online lenders and no issues on their end either. *SOFI was the only one that had a specific clause saying can’t be used for real estate, but I’m not sure why.

My next step to look into is if there’s any issue with cash out refinancing 6-12 months down the road after the rehab and if there’s any other “seasoning” period associated besides what is typically standard.

I'm only a few months into the BP and RE Investing world, but I'm getting the hang of it pretty quickly thanks to all the advice from members on here, podcasts, books, etc. I have my location I want to invest in determined (Indianapolis) and am looking into financing options before I start making offers on properties and getting my team in the area on board. My question is if there is anything wrong, illegal, etc. with using a personal loan to pay cash for the home, rehab it, and then refinance it to pay it off in 6-12 months after the seasoning period? 

I was quoted a 50K personal loan for 7 years @ 9.99% that would only cost me ~ $850 a month with $0 down, no collateral, and no early payment fee. I could also get this same $50k for 6.8% for 5 years, but would cost me a little over $1k monthly. I'd do the longer term at higher interest to keep my monthly payment lower (holding costs) until I refinance within the year. 

Can anyone elaborate if there are any legal reasons why I couldn't do this with a SOFI, Lightstream, LendingTree, or other similar company????? Seems too good to be true as HML's were +12% and a couple points with only 6 months - 1 year terms!