All Forum Posts by: Imad M.

I would like to ask a related question...I am in the process of refinancing a house that I own. This is my fourth total house that I own. Two of them are in my name and two are in my LLC's name. Does this mean I can get 8 total mortgages/refinances before the bank says no? Or have I reached my limit already? If so what are alternate means of getting additional mortgages/refinances?

I have a good lawyer in Montgomery AL. I would be happy to introduce the two of you. Please send me your email address. Best of luck on the project. I can take a guess but don't want to spoil it. Imad

I recommend starting an LLC. It's very inexpensive and keeps your personal assets shielded in case you get into financial litigation. Starting your LLC will prompt you to get your EIN (Tax ID from the IRS). Also very inexpensive (free). This will prompt you to open a business checking account (free). Choose your bank wisely because more often than not you won't want to change your bank once your business is up and running. I use BB&T and have been happy with them. I've heard Wells Fargo is a good business bank to use as well. To further automate your processes have your tenant/s deposit the funds directly into your business checking account. You can monitor your checking account via Quickbooks and categorize the income appropriately. Quickbooks will be able to generate all sorts of useful reports so you can quickly track your money. As you add properties to your portfolio keep the same model. If you want to go a step further purchase a domain name from GoDaddy so now you can have your customized email address...create business cards...launch a website to advertise your listings or blog. Real estate is a fun business to be in. I enjoy every moment.

Just PM'd you Dan.

Thats a great point. Its possible they ran out of funds because the loan officer wasn't able to give me a time frame. They were probably hoping for funds to come in before I gave up on them. Lucky for me I left because A friend of mine offered to fund the entire deal at 12%. We close on the 26th so fingers crossed.

I have a HUD property on contract which expires on 1 Dec. I had 45 days to close. Since this is my third property I chose not to go with a conventional loan. I assumed banks wouldn't want to talk to me anymore. Plus I thought I could turn it around in under a month because the deal was so good. I chose Sherman Bridge because they advertised closing within 5-10 days. They kept dragging the process and had me reschedule my closing by two weeks. Now they're telling me they need another few weeks to close. They've wasted my time and most likely my deal. I have another HML telling me they may be able to close in a week but no promises... HUD offers extensions for legit reasons at $15 per day. I'm now thinking I just bite the bullet and extend by 30 days and go to a solid conventional lender my realtor recommends. Would like to hear your two cents. Imad

In the latest phone conversation they have brought down the rate to 8%. So I'll pay $8K on $100K line of credit (several credit cards). The other catch that I realized is they will perform a series of inquiries on my credit which will negatively impact my score. However, for the low cost of $900 they can help remove these inquiries from my record and help raise my credit score again. 

There is still the matter of how will I report the $100K worth of deposits in my business account once I charge these cards with my merchant account (not sure how much it will cost to set this up yet). Also, in my quick research on merchant accounts the lowest I could find charges 1.75% of the charged amount. 

In conclusion if this company turns out to be legit (low confidence) I will pay a total of $10,510 to access $92K and a bad credit score. 

Pro: Its cheaper than a hard money loan and I can reuse the line of credit for future ventures (provided it's within the introductory 0% APR period otherwise there may be interest applied).

Con: It's pretty obvious...scary to say the least.

Can anyone recommend a HML or PML that deals in Alabama? I am looking at a few lenders now but would prefer one that is referred. I just put a property on contract and am searching for financing outside of using a bank.

SP: $55,250

ARV: $85,000

Repairs: $13000

Holding Costs: $5000 (HML will increase this amount)

Potential Profit: $11,750

Paul G Delaitsch 

Address: 6737 Taylor Cir, Montgomery, AL 36117

Phone: (334) 244-1934

1. I've used him on closing and he was very quick and knows the business. I was in and out of his office in 45 min. 

All,

Has anyone had any experience with these guys? They contacted me stating they can provide easy access to business capital. 

Bottom line is they charge you $30 to do a credit report. Based on your credit they reach out to major credit card companies and get you access to lines of credit. I told them I needed $100K as a startup loan. They said they could get me that amount by getting me access to small chunks of credit lines (cards) essentially (both personal and business credit cards). So I would receive roughly 5-6 credit cards totaling $100K in credit.  I would then set myself up with a merchant account and charge these credit cards the full balance (as needed) giving me cash in the bank to invest in my ventures. 

The catch is they want 12% of your requested amount. So I would have $100K in credit cards with 0% APR for the first 6-12 months and in turn pay this company $12K from those credit cards.

Some questions I had were: 

1. How can I find the creditors  myself and avoid paying these guys the commission?

2. Will I have to pay tax on the amount I charge the credit cards at? The funds will be in my business account once I charge the card so they will look like income.

3. If so, how do I avoid paying tax on that income?

The company is actually called Lend Cred but that is their new name. Their previous name is Hawkeye Managment. Here is the link I found online for them. Let me know what you guys think. 

http://www.hawkeyemgmt.com/wp/unsecured-business-c...