All Forum Posts by: Dustin Neal

So basically I've been researching the topic of starting in real estate for about six months, that's how I found BP. I've read book after book, blog after blog. When it comes to starting out in real estate there are several options. Because I originally planned to work hard all of my life until I was sixty I placed all of my assets into a 401k. Not much in there currently, especially after it took a big hit during this previous stock market blunder. 

So here is my question. I've researched enough to find Hard money lenders who only require a 10% dp versus the traditional 20% for conventional. Now the interest rates are obviously like day and night with conventional loans being much lower. So do I jump into the REI game with a hard money lender at 10% dp or wait and save the 20% dp for a conventional loan?

@John Gamboa

Thank you for clearing that up.

The property is up for auction. The idea that I had was to have a personal loan to purchase the property. The terms are good for a signature loan and the bank in which I do business with is fully aware of my intent. The biggest concern I had was if someone were to outbid me, which is a possibility, I'd be stuck with this loan. However, the bank just told me to pay it off before the first official statement period and I'd be good to go no interest acquired. Small town bank, easy to get along with those people.

Title may be a bit misleading but I have a simple question regarding loans and foreclosures. Is it considered a bad move to obtain a personal loan in order to purchase a foreclosure? I only ask because it seems to easy and simple to be the right move, or maybe I'm over thinking it. For instance, if I was interested in a bank owned property that the bank wanted $40,000 for and I only had $20,000. If I had access to a personal loan for $20,000 that would allow me to purchase the property wouldn't that be the way to go, with the understanding that the interest rate on the loan is less than 6%?

Devan,

I'm new so I just wanted to make sure I understand what your saying. What precisely do you mean by 2% rental? Is that your ROI?

Thank you all for the welcome. I appreciate all of you and look forward to learning and growing in this community. 

Hello everyone!

My name is Dustin Neal and I live in the Lake Texoma area of NE Texas. I am new to the real estate world as a business. Currently I am trying to learn as much as humanly possible before making my first deal. I appreciate any tips, advice and constructive criticism in the future in regards to my dealings. I hope to learn a lot from all the members on this website.

Thank you