All Forum Posts by: Chris Teti

Quote from @Rich Hupper:

How do some business acquire unsecured LOCs in the millions?

@Chris Teti

Hey Rich, that's outside of my wheelhouse my man. I'm assuming you either need major collateral, major assets at the bank, or doing millions+ in revenue (like Apple or Microsoft).  

Hi Sean,

There are some other strategies on how to use cards for your deals. Plastiq is a great option, but better to wire transfer the money right to the title company than try to liquidate it into your account. Definitely don't go the cash advance route, like I said, there are better ways. 

Using your example assuming a worst case scenario of 6% liqudation/transfer fee on the cards:

Upfront/Liquidation Fee: 6% of $50,000 = $3,000

APR: Let's assume 0%

Total Cost: $3,000 (Upfront Fee) + $0 (Interest) = $3,000
Hard Money Loan

Upfront Costs: $4,000

Interest Rate: 12% per annum
Total Cost: $4,000 (Upfront Costs) + $4,000 (Interest) = $8,000

In this scenario, the cards is cheaper by $5K over an 8-month term (and if you use the cards again without reliquidating - that $5K extra profit becomes $13K extra profit)

Same, you can use cards to pay for anything if you know how to do it. And do NOT do a cash advance. Interest is way too expensive and you can only use part of your limit. I would also recommend using business credit cards as you won't have to worry about impact to your personal credit. 

Quote from @Chris Ufomaduh:

I bought a flip property in Houston, located in the 77063 zip code. Rehabbed it from the underground plumbing to the roof, everything is new. Had set backs from the City on get permits so I lost 6 months and the market changed. So now my Hard Money loan is about to mature and need a way out. Trying to sale is my main goal or refinance it but my DTI is high and I don't qualify.

Anyone looking for a long term investment property for rental or vacation rental OR ideas PLEASE?

Thank you!

Hey Chris, sorry you are in this situation. The DSCR option might be a good idea, they won't be looking at your personal income. Also, I have a couple other ideas, but would need to ask some questions to find out more of the details. 

Quote from @Samantha Otero:

Hello Bigger Pockets Family, 

I recently purchased a SFH in Miami using conventional 20% down, however, since I am a first time home buyer, I am claiming this as an Owner Occupant. I plan on rehabbing the property and "house hacking" one side of the home. My question is: Can I use a business credit card to fund the rehab even though this is not considered an investment property? Will there be any legal trouble with taxes down the road if I do so? Thanks in advance.

 Yep, I think it's a great way to do it without negatively impacting your personal credit.

Hi Ryan, there are several strategies that you can explore. For turn key rentals connect with DSCR lenders that will lend in your business based on the rental income for the property, not your personal income. Also, you can look into the BRRRR model as well.

Quote from @Noah McPherson:

I'm 23, and over the past year and a half, I've purchased two duplexes. Now, I'm looking to buy a third property, and I'm actively looking for ways to do BRRRRs with no money down. One potential way I'm considering is using lines of credit to fund down payments and/or rehabs. I currently have no job and pretty good credit. However, I do have reserves that can support three properties and a good chunk of equity in my properties. My question is does anyone have any advice on securing lines of credit? Is there any creative methods anyone has experience with in accessing lines of credit in a situation like mine? TIA

 Hey Noah, yes definitely. I think we spoke before and there definitely are ways for you to get different kinds of lines of credit even without income. 

Quote from @Isaiah Stark:

Was looking for some clarification on how to fund a pre forclosure deal. I've spoken with a homeowner that's being pre foreclosed on and believe I have a solid chance at getting the property before it goes to auction. Im aware of a cash deal (which I'm not in a position to do) , subject to and a conventional loan. Are there any other ways to finance this potential deal?

Does it have equity or is it a short sale? If it has equity, it shouldn't be any different than a normal purchase. Not sure how your state works, in NJ once you are under contract with a buyer they will usually stop the auction date as they would rather the house be sold vs going through a foreclosure. 

Quote from @Nick Dunin:

I found an off market property that's going to foreclosure auction next week.  I guess owner sat on it too long, he took my offer quickly.  This was befoe I realized the auction was a week away.  I'm planning on using a local lender so thats going to take much longer than a week.  I need to find a way to stop the foreclosure auction.  Any suggestions?

 Not sure about how it works in Texas, but in NJ you usually can get an extension of 2 weeks 2 times, especially if they know the property is under contract to be sold. Foreclosures cost alot of money for the mortgage company so it's worth it for them. I would call (or call with the seller) the attorney handling the case to see if you can get an extension. 

Quote from @Tyler Rowley:

Should I assume that the realtors I approach about owner-financing are not telling the owners about my offers? 

Does owner-financing work much better for owners who haven’t already listed their property with a realtor? 

I like to put 0% - 10% down on these deals. 

Hey Tyler. I'm an agent in NJ and they should absolutely be submitting your offers to the sellers. However the average agent doesn't know how to navigate creative financing or off market deals, and the average person selling their house, seller financing is not something they are familiar with or comfortable with. In my experience it is more common for off market deals. But make sure you are working with an investor friendly agent so that when you make an offer, they know how to present it and talk to it to educate the seller in case they are open to it.