As creative financing and how to get financing is a popular topics on this forum, I thought I would share. I am closing Friday on a condo in Columbia, SC using a personal loan. The entire loan application process took about 15 minutes to complete and I got the approval call about an hour later. I am purchasing the 2/1 condo for $18k, rents for $650 close to the university, tech school and downtown in a c+ area. Is it a home run purchase? No, but it does provide cash flow, and I got it in good condition well under FMV. The loan covers 100% of the purchase, no loan origination fee, and I own the property free and clear on paper as this is a personal loan not a mortgage. I am also free to take out a home equity line as I own it out right.
This only really works for low price properties when you have good credit and income to back an unsecured loan, but it is an often overlooked option.
I was just looking on USAA to see how much of a personal loan I can get, great option at 8.99% for 6 years
Congrats on the deal with no money out of pocket. Enjoy the cashflow from the deal. I was just curious to the terms that you got for your personal loan.
The only issue with these are these will show up on your credit report, and increase your DTI ratio, but it is a good way of acquiring cheaper properties without awaiting the mortgage approval process.
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