All Forum Posts by: Lance Luvaul

Sorry @Dave Sandford, not much to report I'm afraid.  I never attempted to do this after all, though I did apply for a non-AMEX card (which was approved).  Good luck in your efforts to build credit in the US!

Hi @Julian Buick.  Yes I agree, I was willing to pay Dad 12%, but he had other uses for his money :)  And unfortunately the deal has gone: someone else beat me to contract.

But no worries, I've been making contacts with private and HM lenders here at BP, and there will always be other deals :)

Cool, thanks @Account Closed...  I'll definitely be in touch when the next opportunity presents.

Hi @Tan Mehedi, I agree I wouldn't get all my money back, but a 70% refi at a conservative valuation of 150k would get me enough to pay back the seller loan of 90% of 80k, plus about 115% of 29k (assuming 15% interest on a hard/private money loan)... leaving me out of pocket only the acquisition costs (down payment + loan orig fee + closing costs), or about 13k.  I'd be happy to acquire a freshly renovated cash-flowing rental for that sum (this one will rent for 1400/mo, or more).

The 29k quote is from a professional full time rehabber/flipper who has personally inspected the property.  He's actually my property manager's partner, and they do these all the time.  He's sort of "on loan" to me from my property manager (who manages my other 3 rentals).

But unfortunately someone beat me to it: the house is no longer available :(

Hi BP, I've found a 3bed/2bath REO in Texas I can acquire for 80k (maybe less) and 10% down using seller finance. Before I proceed, I'd like to get expressions of interest on a 29k* loan for rehab costs and project management fees (*quote from experienced project manager / flipper, includes repairs plus a 4th bedroom). The rehab will bring the ARV to 150k (majority of surrounding houses valued at 160k). Then I would refinance it (70% LTV) to pay off the loan, so the term would be 6mos or 1yr (based on seasoning requirements).

Let me know if interested or private message me on BP, and I'll provide more details.

Thanks @Chris Mason, that helps.  As I say, I've never borrowed short term before, from private or HM lenders, so kinda new to this aspect of the game.

HI BP, I want to borrow some funds off of my Dad for a quick rehab but he's new to the lending game and I've never borrowed short term before so we're both curious as to what's the norm for this type of loan?  I would borrow 30k for between 6mos and a year (the seasoning term before a refinance).

I know it's all negotiable, but we just want to know what's typical?  Thanks

Hi BP, I've just learned about the concept of being released from a personal guarantee on credit cards and wondered if the same could be done with investment property loans. Anyone had any experience successfully negotiating a release from personal guarantee on their loan(s)? I've got a 4 year old loan that I (personally) had to cosign with my LLC, 30% equity in the property, spotless payment record, and would love to have it solely in my LLC's name. Is it possible? Any advice? Thanks!

Thanks @Wayne Brooks, @Steve Babiak, @David S., and @Chris Mason for your feedback, this was definitely helpful to me! Now I know I have plenty of room to grow into more loans. So now comes the hard part: lowering my DTI! (But that's for a different post.)

Thanks again, Lance

@Wayne Brooks: so the limit is not on the number of loans, but rather on the number of homes used as securities?

@David S.: it doesn't look like my houses are owned by Fannie Mae, but I gotta dig up my ITIN for my LLC (to enter into their lookup form) in case their records list it as the owner and not myself personally