Unsecured borrowing to create cash for investment property Y/N?
I talk to a lot of people and many of my clients have a nice size net worth but very little of it is liquid. A referral partner introduced me to a consultant who has relationships with banks for the sole purpose of unsecured lending. Our spirited conversation was refreshing because we spoke the same language: lending, credit, underwriting, insurance. It was a lot of fun. Now, I am considering connecting my clients to him so that they can obtain unsecured cash to the tune of anywhere from $50k - $300k all unsecured and based on their credit. The loans are with banks and credit unions at a 10% interest rate and his fee is 10% of the loan amount - but he does all of the work seeking out the banks that will approve my clients. In my head if you can take that $50K and make it $100K in a relatively short amount of time, this makes sense. The other thing is getting cash without having to jump through so many hoops sounds great especially since the loans are with real banks. One of my clients who has been working on securing $150K from a traditional lender has been working on this since December 2016. I talked to him about this and he said that if his loan does not fund by 3/31/17 I should connect him with this consultant. I am interested in hearing thoughts, comments and input on this subject because I do not want to set my clients up for failure but real cash loans that are unsecured with real banks can be the missing piece that my investors and clients need to gain wealth.