All Forum Posts by: Damon Gibson

 These may be some of the wisest words that I've read on BP in my limited time here.  I humbly ask for permission to steal these words......Bye the way Thanks.

@Marc Kelly I will contact you today.  Thanks!

@Andrew Johnson at this point I'm leaning towards using part of my savings as a reserve for fixing and flipping with the use of hard money lenders.  I plan to do 1 flip/month or every other month until my credit improves and I'm able to refinance future flips into conventional mortgages and hold them for rentals.

The $100k would have been used as security in case something went wrong with my initial investment and I needed to cover living expenses.  However, from what I understand if I use Hard Money I don't have to put up all of my savings (only origination and down payment).  Also, I was originally thinking about using the $100k to invest in a small apartment complex (40-50 units).

At this point I will decline the advance and go the flipping route via hard money lending.   This will give me more time to learn and improve on different strategies. Thank you and others for helping me think through this.

@Zachary Goldman I will definitely check out the Hard Money Lenders page.  Thanks for your suggestions. 

Zach that helps a lot.  We have about $60k equity in our home, and about $25-$30k in the rental property.  However, I suspect we would have a hard time pulling cash out due to the credit issue (wife 660, me 600).  Is it possible for me to get a hard money loan to acquire and rehab (setting aside $30k from savings for down payment).  Once I sell the home repeat that process again.  All the while we'll still have around $60k in savings?  Our cars are paid off, and the only debt we have is the two houses.  Would a hard money lender do a deal with me?  Or could I use my wife since she has stronger credit and is working?

Thanks for your response Dave.

I'm in the process of repairing my credit as well as my wife's credit.  We had some hiccups about 6-7 years ago (foreclosed rental properties).  We currently own our home (17 years) and one rental property (12years).  My wife makes about $55/year, and I'm currently not working.  We have about $90k in a savings account.  The $100k would be an advance on a substantial settlement that I will be receiving in July.  I'm also thinking of going straight to multi-family investing (currently studying and networking).  My only concern is the interest rate, poor credit, and no job.

would it be a good idea to borrow $100k at an interest rate of 3% /month?  I plan to either buy a few properties (at a discount) that need rehabbing via hard money lenders.  I would then use the monies from the loan for down payments and other expenses.  I already have a couple of friends with very strong credit that  I would flip the properties to them for a profit once the rehabs are completed.  They intend to hold them long term as rentals.  I plan to pay the $100k loan back by June/July of this year.  Does this sound like a solid plan even though the interest rate is 3% per month?  I welcome any and all thoughts.

-Derek