All Forum Posts by: Account Closed

@Tyler Shaulis - great, I've got you two down. See you Wednesday!

@Trevor Rutherford $40k in credit cards + $40k in peer-to-peer personal loan

@Trevor Rutherford @Dave Van Horn - I have decent credit and a low debt-to-income (DTI) ratio. I did not want to rack up several hard inquiries at once so I reviewed my credit reports to see how many I already had, when they would fall off, then factored in what I knew was coming. I also used a DTI calculator to ensure I wouldn't over-borrow and wreck my credit score. I did these things so I could make an intelligent decision about how to approach this effort. Here's what I ended up doing:

1) decided to get another credit card with the highest limit they would give me. I got it from the same company that already had two other cards from so I could combine them into one. Ironically, that was easier than just getting them to raise the limits on what I already had. 

2) I used a peer-to-peer lending service to take out a $40k loan. The points and interest are a little high, but I just factored that into the plan and went for it. I used Lending Club, but there are plenty others out there. Prosper is another big one. 

I applied for both of those at the same time. Both were approved. Now I have access to about $80k between the two. I use this money to lock up contracts for flips or BRRRRs and get hard money loans. This allows me to work multiple properties at once and not have to pass up on good deals. 

ULOC = unsecured line of credit. It's a revolving account like a credit card, but is cheaper like a personal loan. I decided against this because I only found limits of $10-20k and only had 2 hard inquiries I was willing to sacrifice. 

@Camilo Rey - Sorry to miss you. It was good meetup! I'd be happy to add you to the email list for the future events. I sent you a PM. 

Hi and welcome @Quinity Williams and Theo. 

I'll second what @Camilo Rey said. That is exactly why we started our group. There's no cost to attend and nothing to sell or be sold there. Just like-minded folks connecting and helping each other reach their goals. Tomorrow's meetup is just a casual get-together to converse about investing goals, lessons learned, strategies, and whatever else comes up.  We usually have about 15 people show up. 

Hope to see you there! 

@Account Closed - thanks for the shout out!

Welcome Skylar! I'm in League City and run a local meetup for REIs called Texas Realty Club. 

We do two things – 1) a monthly workshop-style meeting where we have guest speakers followed by open discussion, 2) a monthly social where we gather for a more casual networking experience. We don't charge for anything we do and we don't do sales pitches. Everyone's welcome to attend. 

Let me know if you are interested and I can add you to the email list. 

What credit sources do you find most useful? Which do you find most problematic?

Big box credit, regular credit cards, "project" loans from banks, ULOCs, etc. 

I am looking at ways to supplement private money and the cash I have on hand to purchase and rehab flips. 

First, I want to say there are some completely fascinating elements to this story. It's a lot to ask, but I would be interested in a case-study type blog post. I'd leave nothing out - politics, sustainability, banks, construction, finance, and marketing. 

Second, I am representing a buyer who is trying to pick up a very nice cash producing quad in an unincorporated area outside of Houston and being treated similarly by the banks. There is nothing unusual about this property, lots of upside, just no good comps in the area to support a value so the banks view it as too risky. They just told us that the week we were scheduled to close. I can see you running into this issue. It has been extremely frustrating for all parties. 

I posted about that quad here. 

Best of luck and I hope you keep pursuing your passion @James Klafehn. 

Hi Eric. I sent you a direct message.

Just got off the phone with the bank. The determination is 'value not supported' and they may not be providing an alternative value. That is effectively saying the property has no value. 

To put that into context - this is a 13 year old quad of 2-2, 1,100sf units, with near-zero vacancies since building. It did not flood during Harvey, it was built on 2 acres in great location with enough land and infrastructure to expand to 3 more identical quads. 

Not sure why they wouldn't come back with an alternative valuation?