Personal loan (not a HML) to help jump start investing?

4 Replies

Good Day to BP universe, 

I came across an idea of perhaps taking out a personal loan to help jump start investing into to possible rental properties or flips.  Not a hard money loan, even though i would consider it.  I was searching around on Lending tree and came across personal loan choices.  I just wanted to seek others opinions regarding taking this type loan to get started.  Any input would be great or others who have taken this route as well. 


Stephen Bechtolt 


I think they are a good idea.

Normally we pay our PML's around 12% interest and I think that you can get the same type of loan with Lending Tree. It just depends on your W2 income and things like that. Which is what prevented us from getting a loan through that site. 

@Stephen Bechtolt Hi Stephen! I like your mindset on using leverage to accelerate your personal real estate ventures- that's exactly how I began flipping properties. 

Using a personal loan could serve as a good tool to bridge into your first project. I'd recommend using it for a flip if you can secure enough of a personal loan, and possibly leverage with hard money- as most lenders want skin in the game on projects. Of course, it's a bit risky, but if you analyze the numbers on the flip, you could have that loan paid off and a chunk of equity in your hands within 6 months or less (pending the resale of the flip). From there you wouldn't be as leveraged and could continue growing as you wish from there.

A personal loan to secure rental property could work as well- but holds more risk as troubles could arise with flakey tenants or repairs to be done during the hold time. I'd recommend the flipping route so you can secure more cash to use as you see fit as you grow your investing career!

there are lots of personal loans around you at your local real estate investment club. just by networking and letting people know what you do there are plenty of people who are time poor but who would like to give you money for a solid return on investment. all backed by real estate. Also your Doctor, your Lawyer and your Dentist are great places to start. No credit or Income needed. the deal just has to make sense

@Antoine Martel that is exactly what i was thinking to avoid those HML or PML interest rates that can be quite high. I am going to look into more, glad you to know you understand my perspective.

@Eric Loya Thank you for support and that is the plan, i am very hesitant about taking out a HML, however i like the idea of using a personal loan along with a HML, id have to look further into and go over some numbers. I was thinking about using as a start to get a flip going to attain capital this coming year, but i do like the idea of using it for buy and hold a little more than i like doing a flip. I need to make a choice. Both are options but id be looking to get just enough to get a down payment.

@Gerald Harris I have been attempting to get one and i am using BP to look for meetups and other apps as well but the events always seem to happen on work nights for me that are run too late, as i go to bed fairly but going to a meetup is something i really want to do.  I can look into getting a PML from those options as well. 

Thank you all for the support and comments.