Peer-to-Peer Loan

You have several options. What you seek is an investor who will take a second mortgage interest in your property and will not see repayment for five or more years. To find such a person, you need to put out feelers in your circle of friends. You seek someone who will not only invest in the property, but a person who believes in you personally, and that you will put some sweat equity into the property so that there is a good chance of a positive return.

You are also seeking someone who has a fundamental positive outlook on the real estate market in the neighborhood you seek to buy into. You need to seek out and find such a person.

Peer-to-peer loan

Peer-to-peer (p2p) loans are, as the name suggests, loans between people that are mediated by a third party. In some p2p loans, the borrower writes a proposal and investors choose whether to fund the loan. In other p2p loans, an intermediary funds the loan, combines the loan with others, and sells shares in the loans to investors. One great peer-to-peer lender is Lending Club. (Readers: If you know of others please comment below.)

Consider a p2p loan as an alternative to bank financing.

Other financing alternatives

If you have a 401(k) account, ask your 401(k) plan administrator if loans are allowed under your plan. Not all plans allow loans, or limit loans to certain circumstances. I do not recommend taking a hardship distribution from a 401(k) account unless your situation is dire.

Bills.com makes it easy to compare mortgage offers and different loan types. Visit the Bills.com Loan Resources page to find out more about the loan options available to you.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com