All Forum Posts by: Michael Kowal

I work with a non profit that trains small business in planning, management  and establishing business credit. They are grant funded so there is no charge for their service. PM me if interested.

Prime rate is 3.5% that is the benchmark for an A paper borrower. If there is an intro rate, make sure you know what the rate is after it expires. Are there closing costs admin fees, prepayment penaties?

Start at Bankrate make at least half a dozen calls including your current bank and try to find the best Credit Union solution as I agree with what Chris M mentioned. TD Bank and Third Federal look attractive but I don't have your scenario info to know what you qualify for.

http://www.bankrate.com/funnel/home-equity/

That's an excellent question Patrick, thanks for asking. A 5% minimum monthly payment is pretty high. I would estimate 2% to be closer to the average of what I have seen. The credit lines that I mentioned are a possible alternative to hard money mortgages. Typically the cost of capital is lower and because they are unsecured revolving lines they are reusable. If you have a high credit score
you may qualify for $100,000 or more in funding, which would make your minimum payment $2000 if you borrow to your credit limit.  You can use available credit to make your monthly payments. You just need a recent credit report to find out what you qualify for. I'd be happy to send more information if you'd like.

If you have good credit, the alternative to hard money transnational financing is a credit line alternative. The lines are unsecured so you can reuse them for multiple properties without incurring any third party fees. Rates range from 8-12% and you only have to go through the underwriting process once. Once approved you can write checks and close deals at your discretion. Good luck with your investments.

Mike K

You have several options, two that come to mind are traditional financing which will depend on conventional underwriting guidelines, and alternative credit line financing. A conventional mortgage, assuming it is 4 units or less of residences you may be eligible for an agency product such as FNMA, FMAC, or FHA. Alternative credit lines lines are unsecured so you can reuse them for multiple properties without incurring any third party fees. You only have to go through the underwriting process once. When approved you can write checks and close deals at your discretion. Good luck with your investments.

Mike K

You have several options, two that come to mind are traditional financing which will depend on conventioal underwiting guidelines, and altenative credit line financing. A conventional mortgage, assuming it is 4 units or less of resididences you may be eligble for an agencey product such as FNMA, FMAC, or FHA. Alternative credit lines lines are unsecured so you can reuse them for multiple properties without incurring any third party fees. You only have to go through the underwitting proccess once. When approved you can write checks and close deals at your discretion. Good luck with your investments.

Mike K

If you have good credit, the alternative to hard money transactional financing is a credit line alternative. The lines are unsecured so you can reuse them for multiple properties without incurring any third party fees. Rates range from 8-12% and you only have to go through the underwitting proccess once. Qnce approved you can write checks and close deals at your discretion.  Good luck with your investments.

Mike K

Here is a nonprofit that will provide training and mentorining to plan your business for free. If you use my name as the referal source the director of the institute will contact you directly.

http://www.businesscreditliteracy.org/contact-us/

Hello Susan,

Here is a nonprofit that will provide training and mentorining to plan your business for free. If you use my name as the referal source the director of the institute will contact you directly.

http://www.businesscreditliteracy.org/contact-us/

Mike

Loan amount 30-50k, full doc, ficos 620, 640, and 670. Will pay off the only mortgage and increase the line so she has some credit available (LTV < 50%). We have been working on improving her credit for the last month, one $300 medical charge off from Feb 2010 is the only remaining derogatory trade line.

My understanding is that once she contacts the collection company it restarts the clock and the collection account will stay on the report; also if she disputes it with the Bureaus we can get it removed temporarily but it will typically show up again once the collection agency responds to the dispute.  Is there any way of knowing when the tradeline will be removed if we take no action?

It seems that getting the collection company to agree to report the account paid as agreed would be more valuable than getting them to reduce the collection amount by $100 or so, and we should address this to get her credit up before starting the application rather than wait for the tradeline to expire.  Would it be advisable for her to be proactive in addressing this? Any feedback would be appreciated.