Asset Based Lenders
I need advice. I may have shot myself in the foot. I recently took out a personal loan of 100K (unsecured) to fund my real estate investments. Well, I now have down payment, closing and gap funds. You would think this is great news.
I just recently signed a contract for a two-family house in NJ. I spoke to two lenders about the property and provided general information. They said it sounds like a good deal. They will need me to be a personal guarantor. My heart nearly stopped. I thought I could buy my investment properties under my LLC and a credit check would not be necessary. The loan would be based on the asset.
Well, now I am not sure what to do. My DTI is of course, over whatever they require due to the personal loan and my other bills.
I am also concerned with the refi out, If I get a hard money lender, How do I refi out of the loan. My goal was to do the BRRRR strategy with this property.
I appreciate any feedback you may have.