Bettendorf, IA · Member since 2017 · 9 posts · 2 votes
BP Community,
I am very new to real estate investing and was wondering what sort of financing options are available. I am looking to borrow $50,000. I have researched taking a loan against my 401k, loans from community/local banks, and veterans small business loans.
Could anyone recommend the best place to find financing?
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
9y
@Michael Dolan, what is it that you are trying to finance? It would be helpful if you provided some additional details about your situation. If you are trying to purchase single family rental in good condition for example then you will get the best terms with the conventional lender. If you are buying distressed property then you are probably looking at the hard money loan... Again, some details on what you are trying to do will help, where are you trying to buy, purchase price range, how much capital do you have available, what type of property you are looking at, etc.
If you are looking into investing your solo 401k in real estate and need financing for a deal, then a non-recourse loan may be an option. Certain banks will loan funds to a 401k on a non-recourse basis.
Through the use of leverage or debt financing, the solo 401k greatly increases its available cash amount for investing.
Bettendorf, IA · Member since 2017 · 9 posts · 2 votes
9y
Thank you all for your responses! I am exploring all of my options, but am currently most interested in the costs associated with starting a Homevestors franchise (advertising costs, equipment, training, etc.)