Indianapolis, IN · Member since 2014 · 100 posts · 18 votes
Im looking to close on my first real estate deal... It will be a "buy and hold" 4unit... we are putting together creative financing and Ill need an additional $7k to make the deal happen... and I will make consistent monthly payments to pay off the $7k loan, (I have good credit) any tips or advice to make this happen? I want to avoid High interest rates if at all possible!
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
10y
I would sit down with a pen and pad and think about anyone and everyone you know who may be able to loan (or perhaps partner, but that seems steep for only $7,000) and call them up. Offer them 9% interest or something like that. Or you could try one of those crowdfunding websites, for a deal this small I would think Prosper.com may be a good place to look.
Indianapolis, IN · Member since 2014 · 100 posts · 18 votes
10y
@Andrew Syrios great! thank you! ... can you list some good crowd funding sites... I see that Prosper.com asks for your income... my income is very low, so I dont think that will work
Dallas, TX · Member since 2015 · 38 posts · 6 votes
10y
Congratulations on your first deal. If you have good credit you should shop around to see who will give you a better deal. Check with your local bank first to see what they have to offer. You may get a lower interest rate buy may need to put money down to close the deal. If you do not want to put money down you will have a higher interest rate.
Real Estate Broker · Tampa, FL · Member since 2016 · 84 posts · 24 votes
10y
Hassan you may find it beneficial to find a partner in your area who wouldn't mind helping you on this deal. The 7k you need sounds like that would be the minimum buy in on your deal!! Congrats on your first deal and good luck to you.
Investor · Canton-Akron, OH · Member since 2012 · 917 posts · 477 votes
10y
As @Andrew Syrios mentioned, sit down with pen and paper write down everyone you know that may have 7,000 that could give it to you if they wanted, then start making phone calls. Anyone who is not interested, ask them if they know someone who might. Odds are someone will loan or partner with you from your list.
If not go to REIA meetings, and present your deal in front of the group, or start calling the officers of the clubs, they will likely know someone.
Rental Property Investor · Dallas, TX · Member since 2012 · 502 posts · 263 votes
10y
@Hassan Muhammad If you have a 401k, you can borrow up to $50k from it. The interest rate is usually very low and you actually pay the interest back to yourself.
Another option might be a personal loan from your bank. My bank will do up to $20k at 10% interest pretty easily.
@Andrew Syrios great! thank you! ... can you list some good crowd funding sites... I see that Prosper.com asks for your income... my income is very low, so I dont think that will work
For only $7000, the crowdfunding sites I know of probably aren't interested. You would want one that deals with consumer lending, like Prosper or maybe even GoFundMe or whatever. But if you have a bigger deal, RealtyMogul.com or FundRise.com are the two that jump to mind. I've never used them before, mind you.
Again though, in the case of $7000, I would look for friends or family that may be able to loan you the money instead of using a site like those listed above.