All Forum Posts by: Daniel Rutledge

Thsnks for the comments guys. I'm mostly done we with my rehab and ended up using cash and credit cards for the rehab. I will check out Carolina lending. I'm also working with fund and grow and plan on taking a heloc to fund future rehabs.

 What cards need to be seasoned? Were they not able to get you setup? 

If you don't mine me asking what were your stats prior to gaining these cards such as DTI and credit score? How long was it from the consultation to getting the first card? What have you used them for so far? I believe these can be very beneficial for a number of reasons especially if you are creative in how you utilize them for other than just swiping cards. Thanks.

I started the process for Fund and Grow this week and have scheduled my call for Tuesday. I will update this thread as I move forward with the process. In preparing for doing this I paid down my CC accounts to 27% but believe I have a plan for converting to cash. Since I paid down my account I assume at least one of them will send out CC checks to get me to fill them back up. If and when that happens I will short term convert the checks to cash and pay off other debt and then balance transfer that balance to the ones from Fund and Grow to remove them from my personal credit. If I receive enough on the cards I will also transfer my wifes CC balances so she will qualify for doing the program with me. If any of our multiple CC accounts offer balance transfer checks we will continue to convert to cash, pay off other debt or use to pay contractors and then balance transfer into the business cards. Seems like a viable way to get cash and slowly move things off of my personal report making it easier to qualify for financing on future properties. Again, I have just started so I will update. 

I have a question about property taxes and in how investors are calculating what their taxes will be when doing deals. In my state of SC the way property tax is assessed for rentals is (assessed value x .06 and that times .1 but that does not include additional taxes that businesses are hit with that owner occupied isn't. A law in my state has owner occupied as being exempt from school taxes but rentals are still taxed. Anyone in my state that is familiar with specific taxes that are on top of the normal property tax or in how to calculate these numbers. Are you looking at the taxes in this type of detail when analyzing a deal and if not what formula are you using when you run your numbers. From my estimate different taxes in different cities on rentals can vary by a substantial amount and could make a good deal go bad fast. Any feedback from the experts or anyone in my area with more experience?

Hi Russell, I will refinance at either 3 months with a private asset based company called Corevest or at 6 months with my normal lender but I am not sure which one I will do for this home. Doing it with Corevest is more expensive but can be done sooner and is based on the asset. It will also allow me to keep the debt off of my credit report so it will not hurt my DTI for other deals as I need to have the income seasoned for 12 months to count it for a conventional mortgage. I will pull enough out to pay off the private lender but will still have some money in the deal but that doesn't bother me as I will still have good equity and cash flow. While paying the private lender I will basically be breaking even but not losing anything. If I can get a tenant in soon I will get a full month of rent prior to making a payment to the lender so that's nice.

Hi all! I recently landed and closed on my first deal after a year of listening to BP and preparing to take the plunge. I was actually still a few months early based on my plan but I was offered a deal and found a way to make it happen. I purchased the home with private money which funded all but 1k of the purchase price. The home was purchased for 141k with an ARV of 189k with rehab costs of 10k. Since the lender loaned all but 1k of the purchase I am total out of pocket including holding cost for the first month of about 14k. So 14+141=152k all in and the home will rent for $1650. After I refinance and pay off the private lender I have about $900 a month in PITI so a great spread between the two. The home is a 3/2 and over 1600 sq ft with a .70 acre lot. Rehab is mostly cosmetic included total paint throughout which my wife and I have already done including patching multiple holes in the walls, replacing some baseboards, caulking and light work. I am replacing carpet in all bedrooms and pulled the old carpet out myself to save money. The biggest cost is doing Vinyl siding to cover up the 1980s wood siding that is deteriorating and is an ugly brown. The home is in the sweet spot in my city and in the best school district. It is less than 3 miles to lowes, Home Depot, shopping and a hospital. The rest of the homes in the neighborhood are all updated and with nice landscaping. It truly was the home holding the neighborhood back and will now be in line with everyone else. The home across the street is listed at 209k but with a larger sq ft. The majority of the rehab cost is on a credit card so almost no cash was used on this deal. How did I do? Thanks BP for giving me the tools to chase my dream.