Hello BP world! Just got my first loan approval for $24k at 26% APR for 60 days. Should I run with it and find a deal or continue shopping? If so, what private lenders do you know of who would fund a loan no higher than 12 - 15% APR for a $30k - $50k foe a newbie investor?
Doiron, congrats on the approval. However, 26% APR is extremely high especially for short-term funding. If you are going to use hard money or private funds, keep shopping and focus on lenders who offer 12–15% APR or better. Better terms will protect your margins and give you more flexibility on deals. For alternatives, ask for referrals from experienced investors and network at your local REIA. Those contacts often know private lenders with better pricing and terms for first time investors.
Doiron, congrats on the approval. However, 26% APR is extremely high especially for short-term funding. If you are going to use hard money or private funds, keep shopping and focus on lenders who offer 12–15% APR or better. Better terms will protect your margins and give you more flexibility on deals. For alternatives, ask for referrals from experienced investors and network at your local REIA. Those contacts often know private lenders with better pricing and terms for first time investors.
What kind of loan is this, and what are you using it for? When you say 60 days, what does this period relate to? We need a lot more info as this isnt making much sense at the moment.
What kind of loan is this, and what are you using it for? When you say 60 days, what does this period relate to? We need a lot more info as this isnt making much sense at the moment.
What do you plan to do with $24k in 60 days? That's not much time and 26% is a really high rate. That's a credit card rate. Even with credit card stacking you would have maybe 9-18 months of 0% interest before the 26% would kick in. Depending on what you plan to do in 60 days, I'd pass on that loan.