All Forum Posts by: JoJo Diego

Hey @Mark S. , I love hearing about others in the same position as myself! Glad you we're able to pay it off and not have to worry about those pesky loans any longer.

I'm in a little bit of a different position but same none the less, I would kill to have just $15K lol. Sadly I wasn't as knowledgeable about finances during undergrad and ended up splurging on my student loans (even though I was a full scholarship athlete - didn't read the fine print on the disclosures ugh!). So right now I'm around 7x that amount (yikes!). After speaking with my financial adviser, I'm going to tackle my smaller bills first (car and small credit cards) then start chipping away at the loans. The highest interest rate on my loans are 8% (these are private) so they will be the first to go. I have some that are at 6% and 2%, I will take my time with these while I accumulate some wealth. Simultaneously, I'll be ready for my first flip early next year - yay!. My business partner and I have been looking at places, gathering as much information as we can about areas, and we've even found other investors that have taken interest in flipping with us. We're also gathering and networking with the resources we'll need (general contractors, plumbers, electricians, painters, etc.). 

By the time I'm ready, I'll have diminished my car note, $0 balances on my cards, and a hefty amount of funds saved of just for REI (still debating what I would use this money for though as I would prefer to use the least amount of cash as possible). I'm going to go with a personal loan or personal line of credit so that I don't tie up my opportunities at having an FHA or mortgage for myself personally and we can avoid the other requirements of a mortgage. As I do understand the interest rate will be higher, I figured this is the equivalent of having to deal with closing cost and other fees that occur when taking on a mortgage and I could use that "cash" to pay it down if we decide to sit on a house for a while.

As this is my plan right now, we all know things change, and if they do I'll be sure to reach out to the BP community and ask for their advice.

With that said, I hope this helps! Let me know if I can aid in any way!

Thanks @Copelon Kirklin 

I'm trying to understand the benefits and differences between hard money and a personal, essentially don't they accomplish the same things? Or am I misunderstanding something here? I thought the idea of getting to investing is to use least amount of my own money as possible, but this convo seems to suggest otherwise.

Congrats!

Hi Tim, 

You can never go wrong with the first one - it'll open your eyes to things you knew but never applied. I'm actually going to read it again because it was such an eye-opener. Enjoy!

Sweet! Thanks @Hattie Dizmond 

Thanks everybody for your feedback.

@Nilesh Makhija  we don't have any numbers yet, just been in talks about it and I was wondering what other investors have done but we probably won't grab any homes over 100K.

@David Taylor are personal loan rates lower? I guess that depends on who we go through for the loan, I would prefer a credit union. I figured they would be higher than a mortgage.

@Wilson Churchill I haven't thought about that, I figured the interest rates on credit cards would be so high. Also, I don't know if we can get limits high enough - who knows what can happen in the next few months.

@Marlon Freeman yes, the personal loan will cover the cost of the house and the rehab along with anything else that we'd need. Yes we will both obtain separate loans and the personal loan will be from a bank.

Hi there,

I was chatting with a friend that I plan on partnering with in flipping houses with (in DFW, mainly Dallas/Far North Dallas areas) and she brought an idea across - to purchase foreclosures with a personal loan rather than seeking a mortgage. She detailed a few benefits, one being less hassle during the approval process and there would be enough funds to cover the cost of the homes that we're looking to buy...one disadvantage I noted was the interest rate of the note, it's for sure going to be higher than that of a bank mortgage (assuming we get a good rate). I wanted to ask the opinion of experience investors, would any of you recommend doing this?

Welcome @Demetria Hall !

That's quite an impressive track you've got there! You'l definitely be able to help aid value to those learning the DFW market as well as find some new tricks to add to your collection. Enjoy and keep up the success!

@Fred Sams thanks for the warm welcome Sam!

@Mark Gallagher   I can't thank you enough for your insight! I think I'll take the route of paying off the cc and the car while saving up a down payment. I meet with my consultant in a couple weeks and will let him know my thoughts as I'm eager to try this real estate game out and see how it goes.

@Adam Moehn  I like your layout as well, it at least leves some glimmer of hope for me to try out investing while still tackling the items that need to be handled. Like Mark was saying, why not let my investments pay for that education especially since it's definitely possible. Thank you!

@Jonathan K. Thank you and congrats to you as well - major accomplishment I know you're happy it's the final stretch! I couldn't have said it better myself, waiting just seems like the end of the world and I'm not one that enjoys being stagnant for so long. Although I wish someone had educated me on the true burden of financial loans when i was younger, but that's a topic for another discussion lol.

@Shawn Daniel It seems like thats the consensus among the investors on here and it does make sense, I think this is the route I'm going to take while looking at the cost of my loans vs the cost of deals that I've been looking at. Thanks so much for the insight, owning property just seems close to impossible with these loans in hand but I knew there had to be others out there that have purchased homes with student loan debt as well, I just always wondered where did they get started.