Just a Few Dollars Short!

8 Replies

Hi All. I currently own 2 SFHs outright (no debt and both in my LLC) and wish to purchase a 3rd. I have $50K but would need about $85K for the 3rd home. I don't want to do a traditional mortgage since the amount is smaller and the fees are awful in TX. Is my best bet simply a personal loan? I probably could pay off the $35K in about a year or a year and a half. Ideas? Suggestions? Thanks everyone!

Hi Aaron. Would a bank do that if the property is in my LLC? (Can you tell I'm new at this?)

@Alfred Litton Have you considered asking a friend or family member for a loan/mortgage?

Depending on the LTV they could be very comfortable with the collateral and you could win by not paying off all of the fees.

a conventional mortgage is the cheapest loan you can get.

a heloc will be cheap, but have a higher, usually variable rate, and much harder to get on investment property

a personal loan is most likely not going to be a viable option. unsecured personal loans have high rates and require high liquid capital

@Alexander Felice.  I am able to pay the loan off in about 12 months, no problem, and I have about 2/3 of the cost of the home saved in cash.  So I'm less worried about the interest rate than the crazy fees/closing costs on a mortgage.

@Alfred Litton If you want to go personal unsecured loan, you can try lightstream.  Super easy and if you have good credit they will fund within a day or so.  

BUT, since you currently have properties in LLC, I might suggest trying getting a commercial loan cash out refinance on the two houses, and pay cash for the new house (it will have to be in the same LLC as well). This will get you into new arena of real estate and you'll be able to grow the business quicker down the road.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

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.

We hate spam just as much as you