All Forum Posts by: Chris Jackson

that is also good advice. the reason I didn't use a HELOC is because I don't own a house. I am currently renting so I couldn't go that route. but it is definitely a great option too!

Here's what I just did. I paid almost nothing for a duplex i just bought and collected $2,100 at closing! WOO! So first - I contacted at least three different banks all within one or two business days. At each bank I obtained an UNSECURED LINE OF CREDIT. Two banks gave me $25K, and one bank only gave me $5K. The only reason I took the $5K was because it was my home bank. haha! Anyways, most of the time, banks will NOT allow money from an Unsecured Line of Credit to qualify as the Money Down needed for closing a deal. However, one of the banks that I obtained my LOC from WAS willing to accept that money as the down deposit as long as I went with them for the mortgage as well. So even though they felt it was a risky transaction from their point of view, since it was all done in-house, they were willing to finance 100% of the deal. So I think that is pretty awesome, right?

Coincidentally - the reason that you want to contact those banks all within the same day or two is so that all of these separate reports down show up on your credit report - it'll only make one hit on your credit report and by the time all of the banks say "YES" it will be too late for them to know that you went out and got a bunch of LOC's. THIS would also be a great time for you to go apply for some 0% financing credit cards (which I also did). These will all help you down the road for repairs once you buy properties if you don't have the money in the bank.

Cheers!

I just closed on my first investment duplex yesterday.  WAHOO!  Here are some of the highlights:

• The bank financed EVERYTHING: They gave me a mortgage for 75% of the price and I was able to use my Unsecured Line of Credit to finance the remaining 25% down payment! You CAN invest with no/little money in the bank. The trick? I found a bank that was new to the area and was willing to do everything in-house.
• At closing I got paid $2,100 - this month's prorated rent plus the security deposits. So I literally made money on settling this duplex.
• And the biggest shock: I found out after I signed all of the paperwork that my upstairs tenants are Section 8 Tenants!  It was not stated anywhere in any of the paperwork and the seller conveniently forgot to tell me until after I had signed everything. It's a darn good thing I'm not opposed to Section 8 Tenants; and it's partially why the duplex is cash-flowing so well.

Next Deal in the work... I had my realtor send me listings for multifamily buildings that weren't sold while listed.  I am negotiating an 8-plex for $265,000 which comps put around $320,000. It is sounding right now like I might have found another local bank that is going to be willing to let me use my unsecured lines of credit for the 20% down payment needed and they will finance the remaining 80%. So I am possibly about to buy a commercial property with no/little money out of pocket again!

@Jon Raccah thanks for that explanation.  It makes sense. It looks like I might have a local bank giving me a "yes", but if not then I will have to check out the mezz loans to see how I cash flow.

thanks. I could ask if he wants to finance the whole thing but I imagine the answer is no since he said "I want to get the money and run" the last time we spoke. The 255 was just a typo but if he isn't willing to finance anything and I have to get this deal done without PM then I might renegotiate to 255K. UPDATE: I am waiting for a call back from a local bank. it sounds like they might be willing to finance this deal by making the sale price around 300K but building in 50K seller help and then letting me finance the rest of the down payment with my line of credit. 

do you think you're going to continue communicating with him to see how it goes?

interesting. I don't know anything about mezzanine loans. could you explain a little?

I have a seller verbally agreeing to sell me an 8-plex for $265K.  I have NOT had an appraisal done, but I can't imagine it would appraise for less than $300K. I thought the seller was interested in owner-financing the 25% down that I would need for a commercial loan, but he said to me on the phone today, "I just want to take the money and run."  His exact words. He isn't as desperate as that makes him sound, but I still think $255K is a good deal for this commercial property. That being said, now that he is no longer interested in providing my 25% down that I need, I am trying to figure out what my options are for getting that money so I can secure a bank loan.

Anybody out there have some solid ideas on my possible options?  THANKS!

I am interested in properties in northern MD close to I-81.  Hagerstown, for example.  Thanks

Hey PRO members.  I received a commercial loan offer from Thomas Woodward. Can anybody vet this guy?  Looks like his company's website is Intercontinental Private Loan Company, www.intercontinentalpl.com.