All Forum Posts by: Rigo V.

Wondering how you cred score is affected by having this many mortgages? Not to worried about dti since each cashflowing property should actually help you dti. 

@Wayne Brooks my worry was that a bank would look at my credit report and say I have too many loans. Similar to when you draw down on a heloc and your credit score goes down

@Ryan Ingram that is interesting. I am hoping to BRRR as many properties as I could but I was worried that providing a personal guaranty (which I don't think I can avoid) was going to really hurt my credit score

Is your credit score affected significantly- If you have multiple properties, you own them in an LLC and are the required to provide a personal guaranty?

Just hoping to BRRR as many small multi (2-4 units) properties as possible and this came to mind.

There's an REO that just got listed on the MLS. The property is very similar to a property I have under contract a half mile away that appraised extremely well. I can only afford to go through with the property I already have under contract.

Would you just forget the REO or would try to somehow scoop it up and make money from it one way or another?

@Melissa Nash I def need more than a drive by appraisal. I would hope they look at my scope of work and factor that in. My duplex is one of very few in the area and it concerns me someone not in the area will know how to appraise it.  

I am under contract for a property and using hard money. My lender is a small local company in NJ and the property is in the neighboring state of PA about 100 miles away. The lender is insisting on using an appraiser that is 100 miles south of my property in Philly. I am concerned the appraisal wont be done correctly. Am I being paranoid or is this common? 

@Mike Zins thanks for reply! the hml has no criteria on the $ associated to the draws. Love the idea on the waivers btw.

The main goal for me here is manage cash flow and also not get in a bind by having a gc walk out and having fronted him too much. 

@Tim Johnson not sure i understand your response. In my example the work is completed.

If my hvac guy asks for 8k and I pay him a 2K deposit and then he completes the works.  I would do a draw for the 8K and pay him the remaining 6k with the draw. 

So I have a HML for a fairly large rehab. The HML is providing 75% of the purchase, 100% of the rehab. My questions is around the draws and how I should work with the contractors?

In my mind lets say I have a contractor doing HVAC for 8K. He asks for a deposit and I pay him 2K. He does the work and I ask for a draw from the HML. The HML "reimburses" me 8K and I pay him the remaining 6K and I get my initial 2K back. Is this how everyone does it? I know you should never get in front of your contractor with payments.

Should I be only floating deposits/small amounts until work is complete? I don't want to make it hard on the contractors but also don't want to float an entire reno.