I am looking to buy my first house to flip within the next week or two. My question is this: Should I look at getting a home mortgage loan or a small business loan to pay for the house? I have enough capital to cover any down payments and possibly some maintenance to prepare the house for resale.
If anyone could help me out with this, I would greatly appreciate it.
Thank you in advance,
Typically a small business loan is used to start/finance/expand a small business. The bank is going to want real estate to secure the loan anyways so it's basically a mortgage with a higher interest rate. If you go the mortgage route, you have to consider how many houses you plan to flip annually since you will eventually not be able to get a mortgage as the houses you flip will become your inventory in a sense and you may no longer qualify for mortgage financing. Your best bet is a hard money lender and over time you will build a relationship with them and your rates may get better and the process simpler. Just my thoughts....
Thank you. I will look into hard money lenders - this is something I don't know much about. What you say about the others makes sense. I obviously have a lot to learn, but this seems to be the place to learn.
Again, thank you!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!