All Forum Posts by: Allen Fletcher

@Alex Muirhead

10% of what? Are you talking the condos in your building? What entity owns the loans? Data like this will help people see the picture more clearly so they can see avenues you can use.

Allen Fletcher

@Brandt Tingen

What other sources have you looked to for funding? Do you already own the property? If so, have you spoken with a hard money lender? Have you tried talking with any private money?

@Rich Hupper

One of the factors used to determine a credit score is the percentage of your credit that you have utilized. This means ALL sources of credit get looked at to determine if you have used a large portion of your approved credit. If you use 80% of your HELOC you will be dinged until you get the utilization lower.

Regards,

Allen Fletcher

@Alex Muirhead

Can you share a few more details? I think I understand the problem, but more detail may be helpful to answer your question.

Allen Fletcher

@Christian Baker

This loan sounds like a Hard Money Loan, are you working with a hard money lender? Have you tried getting a traditional mortgage to finance the purchase and then used another loan source (I would try Lending Club for an amount that small) to cover the rehab? See if you can approach a small local bank with a well written proposal and I bet you can get better financing.

Keep me in the loop, I want to know how it goes,

Allen Fletcher

@Pete Perez

The best way to get a rough estimate is to call up a couple of insurance companies and ask them. Before you call build a specifications sheet for 3 imaginary multifamily properties in the type of area you want to invest and ask for a quote on each one. Have the properties span the entire envelope you will be looking to buy (i.e. small, medium, large). Once you have all of that data you can average them out to give you a rough range on what you will have to spend to insure your properties.

Please ask any questions if you want more details,

Allen Fletcher

@Austin Keelen

I think you are right on in your approach. Investors should always leave room for unknowns, this means you will pass up on many properties, but once you find one that fits you know for sure that you are not going to be digging money out of your pockets each month.

Keep it up,

Allen Fletcher

@Anton De Vries

Earnest money is not lost unless you back out of the sale contract. It is usually used as a tool to keep buyers from backing out of offers all the time. Bids at the courthouse are a little different, at least in my state, you have to have $20k in cashier's checks (this is your earnest money), if you do not win a bid then this money comes back to you, but if you do win then that earnest money is applied towards the purchase price and you have to pay the difference.

Hope this helps,

Allen Fletcher

Thanks Darrin!

@Manolo D.

Often the bank will only require a certain percentage down. If you are getting a $35k loan they may require as little as $10k in the CD. The only other way you can build business credit is to get a secured credit card for the business (which works the same way).

Allen Fletcher