Updated almost 6 years ago on . Most recent reply
Unsecured Loans for BRRRR strategy
I am in the Louisville, KY area, and a 13 year veteran investor and I brrrr every chance I get. I am wondering if it would be better to take an unsecured loan, buy, fix up and then roll into permanent financing. It appears that it would be easier to move to your next project, and eliminate the red tape and hoops from regular banks, and eliminate the hard money guys.
Has anyone used this strategy, and do you recommend any unsecured sources?
Most Popular Reply
Unsecured debt is much harder to raise. No collateral for the lender obviously. Not impossible though. Do you have a family member who trusts you and could borrow from.
If not, you may try LendingClub or other peer-to-peer lending sites. You'll probably end up paying hard money rates, but the process of getting the cash should be simpler.