All Forum Posts by: Brandon Eleazer

Thanks for your input Ned. I'm weighing this loan Vs asking a friend for a loan, and would need to pay him 8-10% ($1,200-$1,500)

Sam,

The thought is:

$15,000 loan @ 5%, 10 years= $159.10/month payment
Property is owned free and clear; loan will pay for $15k repairs. Cash out refinance in 6 months (lender requirement to wait 6 months to refi)
6 months payments X $159.10= $954.60 total cost
My funds will be tied up for 6 months until the cash out refi can pay off the loan; however only having to pay $954.60 is much lower than many other loan options available (credit cards, private lender, hard money, etc.) and does not require a lien on the property.

Ned,

Per my conversation with a customer service rep from the credit union, a Share Loan:
- A loan based on account balance (shares)
- Uses account funds as collateral for the loan
- Funds in account become available as loan payments are made
- Approval Not primarily based on credit since you're borrowing against your own money
-low interest rate of 5%, up to 10 year term

I plan to take out a share loan to pay for cosmetic renovations and pay the loan off once I refinance with a 30yr conventional mortgage. The strategy is using the banks money to repair the place by putting my own money as collateral. Seems like a decent (inexpensive) way to borrow money if you have the funds available but don't want to use them.

Congrats Mehran. I like that you interviewed/hired your PM simultaneously with taking ownership. This will likely be an easier transition than bringing them on board down the road.

Good luck with your new real asset!

Brandon,

Nice work....looks like you're well on your way as an investor. Question: Did you refinish the floors yourself?

I looked at a multiunit in Germantown last week. If you live in one of the units it would be nice to only pay for the other two units you're actually renting instead of $150 for all three.

Yes, that new lead certification law is going to be chaos. I went and got certified to complete the lead tests; something you may want to consider, though I'm not sure if you can submit samples on your own properties; seems that would create a conflict of interest.

My credit union is offering share loans at a fixed 5.00% up to 10 years. They advertise this type of loan to build credit, but at the low interest rate it seems like it may be a good idea to borrow against my own money. Anyone have experience with these types of loans?

Hey BP,

I am considering making an offer on a duplex. The building has separate electric for the units; but there is only one heater and one hot water heater. How much, if at all, should this influence the purchase price or decision to buy....?

Thanks for the reply Andy,

Are you saying the LLC is sold to the end buyer while it has the property under contract or the LLC is sold to the end buyer after settlement?

Wayne,

As listing agent for shortsale what's your opinion on offers with:

1. Mortgage contingencies
2. Buyer "And/or Assigned"

Communication is key though consider e-mail vs. call so you'll have written evidence if you go to court. You should find out how much they owe and request your money now. Good luck