I want to start buying rental properties. I have some money, but I need more. Can I start a business, then get a business loan, to then mortgage these rental properties? Basically borrow money to use for down payments on mortgage loans.
No. I don’t think that’s legal to do. The business loan you get will be to build up your company, unless you state it’s to buy houses.
Business loan to get mortgage loans?
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You could, there’s a lot of factors. You’re going to need a decent sum of money that you’re going to put into the business as well. Lenders aren’t going to give you money for a business if you’re putting nothing into it…
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No. I don’t think that’s legal to do. The business loan you get will be to build up your company, unless you state it’s to buy houses.
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Some business loans have higher interest rates than real estate loans so you have to look carefully into them and do your math. If you have some money but not enough, try looking into real estate hard money lenders, creative financing with sellers or partner with somebody.
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