Posted by James on August 11, 2009 at 03:20:31:
What are the requirements to get a 100% rehab loan at a local bank ? ie… credit score, full or no doc, reserves… etc…
Acquiring business lines of credit - Posted by David
Posted by David on July 24, 2009 at 04:09:43:
Ok so I had this dream of incorporating (s corp) and then building a corporate line of credit which I would use for startup capital to get my real estate investment business off the ground and then raise private money for funding investments…
and then I woke up…In hindsight I would have incorporated my last business from the beginning and draw a salary from the corporation as well as use my business credit for business expenses but I made the mistake of doing business as a sole proprieter and completely messed my credit up when the market changed.
Are there any tricks of the trade, or back door strategies for acquiring business credit even if you have poor personal credit? And I don’t want to wait two years before my credit has cleared up as I want to take advantage of the glut of foreclosures NOW before it’s too late…I realize this economic crash is a once in a lifetime opportunity and I want to capitalize on it…your help is greatly appreciated!
Thanks a bunch,
David
Re: Acquiring business lines of credit - Posted by David
Posted by David on July 24, 2009 at 08:26:31:
Has anyone heard of Tom Kish and would you recommend the course he sells?
Re: Acquiring business lines of credit - Posted by Sean Frontz
Posted by Sean Frontz on July 24, 2009 at 06:04:12:
Two things…
I will share what I am doing and then what I have thougth about doing…
First… I have perfect credit and plenty of W-2 income and STILL can not find a lending source in this market, so first of all, don’t beat yourself up. Right now, I am using an Angel and paying 13% which is a little high, but as you said, this is the time to buy… Fortunes are made in this type of an economy!!! I have bought two homes in the past two months and I am looking for more everyday. I am willing to pay the 13% which is high and costs a fortune to carry, but I am confident that I am saving more than 13% in this economy with the prices I am able to buy these homes for… I now have 8 and I am making an offer on one today.
SECOND… what I have thougth about doing… there are things called Shelf Corporations. Google it if you are unfamiliar. They are corporations that people establish and then literally “shelf”… meaning they put them to the side to “Mature”, and then sell them to people like you and I who want a business but do not want a new D&B number and no access to credit. There are even some companies who say they can sell you older C Corps that have current lines of credit open, and they say they are guarenteed. I have never felt 100% secure in doing this as of yet, so I have not pulled the trigger, but something you could spend time researching and see if it is right for you…
Hope this helps a little…
MAIN POINT!!! DO NOT GIVE UP… people like me make fortunes off of people who give up because we are willing to go that extra mile and MAKE things happen.
Best of fortunes to you, Sean in Baltimore!!!
Re: Acquiring business lines of credit - Posted by Bruce Lawson
Posted by Bruce Lawson on August 18, 2009 at 21:54:14:
I have been speaking with his group via email, and I don’t understand what you get for his price of $1379, all you need is the money and your EIN.
I have not took it any further.
Bruce
Re: Acquiring business lines of credit - Posted by David
Posted by David on July 24, 2009 at 08:34:15:
Or Richard Odessey for that matter? They both sell courses on building large business lines of credit, which I’m skeptical is still possible in todays credit crunch…even with perfect credit.
Re: Acquiring business lines of credit - Posted by christopher w
Posted by christopher w on July 27, 2009 at 11:59:36:
Sean,
That 13% interest rate is going to eat you alive. If more than one of your house go empty for more than a month it will wipe out your profit on the other 6-7 for over a year. Now is definitely not the time to be buying for appreciation as we are in a depreciating market. You need to put together a business plan and start hitting regional banks looking for funding. Here in Texas there are local banks everywhere fundng deals at 80% LTV plus 100% of rehab at 5.75 for 15 years. To break it down for you that means on a 100K note the payment would be $1034 PITI for 15 years vs. what you are paying which is probably 13% interest only which is costing you $1083 per month without paying down any towards principle. Glad to hear you are able to borrow money but you need to look harder because it is definitely out there.
Re: Acquiring business lines of credit - Posted by Lee
Posted by Lee on August 23, 2009 at 24:24:25:
13% interest sound great but it depends on your deal.
I buy houses that sold in 2006 for 100k for 30k.
If I pay 13% interest on 30k that is only $325/mo
I sell the properties using a wrap to people that can put down at least 3k and I get the other 8k from the government’s first time home buyer tax credit.