All Forum Posts by: Glenn Pelt

I am a local investor in southeastern ct. I'd be happy to answer any questions you have. If this is the deal I'm thinking about it's been shopped around quite a bit. I could be wrong though 

I have used them mainly for MLS listed properties. They have been quick to respond to my offers. Generally within a few hours. It does take a lot of back n forth as they only usually come down about 1500 off list price then 500-1000 after each subsequent counter offer you put in. But the listed properties have been priced very good so there is not much room to negotiate. Also like the fact that I can put in the offer myself without needing my agent to do it.

I never pursued, listened to my gut and all the advice here and just stayed away

Yea ARV is very important, but im being very conservative and basing the estimate off of realtor comps/mls...not just throwing a number out there

Thanks for the input guys, I have already told them what it will be used for and they dont have a problem with it. Its probably due to the fact they are a local bank so they are going to be less stringent then one of the major banks...

I dont mean to sound like I have it all figured out, im just wondering if I'm missing something because it seems pretty basic to me.

So here is my question. I can currently take out a home equity line of credit on my primary residence with a local bank for about 100K. The rate is 3.5% and will have a 5 year term.

My question is cant I use this to purchase an investment property and then cash out refi to pay off the credit line and do it all over again? I would be avoiding the hard money fees, points and high interest rates.

The property i'm interested in buying is 54K+25K for rehab, arv is conservatively 130-140K. Its a 3 family. The local bank allows cash out refi's with a new appraisal after 6 months. They are a portfolio lender.

So why couldn't I just pay cash and rehab costs with the equity line then refi 75% after the 6 months, pay off the equity line and do it again?

This seems reasonable to me, and frankly pretty basic but am I missing something?

I look forward to everyone's input.

Thanks for the input, here is what ive been told to this point...in regards to Joe' s point ive been told that the company has basically done its own transactions and tax returns to show income over the past however many years. Apparently the companies that sell the shelf corps set it up this way so that it looks like the LLC/Coorp is making money, it also says that there is a personal gaurantor already in place and that person stays on the credit line so that it wont get revoked. When I posed the question as to why anyone would leave there name on the credit line I was told that due to the laws in the states that these LLC's/corps are created only the person who "owns" the llc/corp can be held liable for the credit line if it defaults, not the gaurantor. Hope that helps, anyone who wants more info can send me a private message and I can show you the contract that has been provided to me by the company that sells these.

Joel-thanks for the input. Yes the upfront fee is worrisome, they do have a contract that specifically outlines what you will receive, and it says the line is already active and I will have everything in 3-5 days. I am going to have an attorney review the contract but my main issue is whether or not it is possible or if anyone has actually DONE this with any success/failure.

Hi Everyone, first time poster here in the BP forum, I'm a newer member and investor and love the info on this website. Anyway here is my question. I have been approached by a company that claims to be able to sell me an 5-year aged shelf corporation from California with a 500K unsecured line already open and attached. The cost is 6K...I have read up on the topic and there is a lot of fraud warnings etc from people who are skeptical about it. I know there are a lot of companies that offer these corps with the claim that you will be able to get credit in the future but what about this deal where there is already a line attached to it? Any advice or input would be helpful.