I currently want to invest in real estate but unfortunately i don't have the funds. A year ago i helped a relative get an apartment complex with an FHA loan by being there co signer but because of me doing this i don't qualify for any mortgage loan now. I dont meet the Debt to Income ratio under 45% that most bank require and putting a higher down payment is not an option for me. I have researched other alternatives like hard money lenders to invest in real estate to fix and flip but they too a down payment that i dont have for + the funds to repair the house. So i did more research for alternatives and got a bit creative and found personal line of credit. Is it possible to get an unsecured personal line of credit to pay the down payment and the repairs for fix and flip. By doing it this way i will have the funds to pay the down payment + fees and the repair cost. For example using a line of credit calculator for a 10k loan i would pay around 300 a month which i am able to pay. Is it possible to invest in real estate this way? or what if you use the line of credit to invest in an index fund instead of real estate. For example in month one instead of buying 1 unit of the vanguard 500 index that are currently around $235 each month which would take you around 3 year to reach $10k you use the line of credit of 10k to buy 42 units of the index in month one. If you are able too wouldnt using the line of credit help with compounding better then the first method of buying 1 unit each month?
Submitted October 15, 2017 at 03:21AM by Mindonmycheddar http://ift.tt/2ymT32U
