Hi, I am at the point in my real estate deal that I need to find funds to rehab and furnish the property that I will have in a lease option agreement.
So, I have considered using peer to peer lenders to fund my rehab expenses on a deal, as well as purchasing furniture for the property. Some popular ones that have shown up are lending club, prosper.com and several others.
Can anyone please share what they know about borrowing from these types of lenders. It would be best to post of the pros and cons, as that would give me better view of things.
Hi Isaac I've used some of those websites before mostly as a investor but have looked into it as a borrower as well. They're ok to access money I find that rates are a bit higher and can sometimes take some time to fund. If you have equity you can tap into, a HELOC might not be a bad option either I saw one Credit Union today that has a 2.99% 6month intro rate can't beat that.
I understand that the interest will be higher then traditional type of lending. Is it on par with hard money lenders(better or worse)? I just won’t be able to offer a first lien like most of hard money lenders require, since the funds will be used to rehab and furnish the property while I have it in a lease option status. That’s why I believe these other types of lenders may be easier to work with to lend from. Thoughts?
@Isaac Chun I think you're right in seeking these peer to peer lending vs hard money lenders. Hard money is definitely going to cost more and like you mentioned you can't offer a first lien position. I'll PM you the credit union info for you to check out.
PM me iif you are still looking