All Forum Posts by: Joshua Kaufman

@David Dachtera - you are correct that it could be a complete unknown. We will reduce our LTV and increase our collateral (including blanket mortgages on additional properties) until the borrower has proven their abilities and has a track record with us.

The credit report helps, but it's only one piece of the pie when determining who to lend to

@Arick W. - We charge a small application/processing fee and have incorporated the checks into it. We could, and do, discount our fee accordingly but I would prefer not to ask the applicant to put out any money until the deal closes and it's time to begin their monthly interest payments.

@Arick W. - I've used that same service but had a few too many instances where the applicant never received the email. I did like the option of paying for the check instead of transferring the cost to the applicant. 

I've since tried experian which offers very similar results but is a bit more reliable. However, there is no option for me to pay for the check and forces the applicant to pony up.

Hi All,

I have a company that writes mortgages for those flipping or rehabbing properties. As part of our due diligence, we run background and credit checks on the borrowers. Does anyone have any input or suggestions on how to do this. Currently we use a company that uses a third party verification so even though we get the paperwork signed by the borrower that gives us permission to run these checks, they still need to approve, and pay for, the check through the site. I'd like to avoid having to bother them to do so and take the cost in-house. Thanks for the help.

Hi All,

I have a company that writes mortgages for those flipping or rehabbing properties. As part of our due diligence, we run background and credit checks on the borrowers. Does anyone have any input or suggestions on how to do this. Currently we use a company that uses a third party verification so even though we get the paperwork signed by the borrower that gives us permission to run these checks, they still need to approve, and pay for, the check through the site. I'd like to avoid having to bother them to do so and take the cost in-house. Thanks for the help.

@Ethan Anderson - I think I can answer some of your questions. Feel free to drop me a private message and we can go from there. Thanks!

My understanding is that an LLC can be treated as an S-Corp. I'd start by reading something like this -

http://www.bizfilings.com/toolkit/news/tax-info/ll...

and then go on to discuss the situational details with my accountant and/or attorney.

@Lucas Hammer - understood. Nothing in my deals would lead me to believe that your interest rate would be affected by a payment that's not technically late. Good luck!

I would guess it depends on the state and how your mortgage/note are written. When I write our loans, we have a grace period built in - typically 5-10 days - before the payment is considered late and penalties are due. 

I'd recommend reading through your documents and perhaps discussing it with either your lender or attorney.

Hi All -

I've spent a while reading through the forums and seeing what BP is all about and finally made the leap to joining. I have a private lending company in Northern New Jersey and am always looking to expand my network and business. I see many like-minded people here and hope that there are relationships to be formed and things to learn from each other. I look forward to reading more and seeing what BP has to offer.