Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Ty Downing

Ty Downing has started 4 posts and replied 28 times.

Post: 50,000 line of credit

Ty DowningPosted
  • Lender
  • Ponte Vedra, FL
  • Posts 28
  • Votes 5
Originally posted by @Kerry Baird:

Former military here...we must try for a line of credit at Navy Federal. Wow. I've been doing this a long time and haven't had an LOC like that offered, unsecured. At any rate, I am doing a 5th mortgage right now...they only want one month reserves on the primary loan and 2 months for the investment loans. I'm not adding a whole lot, but reserves are a sticky wicket.

 Yeah I was suprised too. Just message me if you want some more information or the guy I have been talking too. I was originally talking to them about the investment loans they offer but this seemed more flexible.

Post: 50,000 line of credit

Ty DowningPosted
  • Lender
  • Ponte Vedra, FL
  • Posts 28
  • Votes 5
Originally posted by @Michael Johnson:

@Ty Downing I hope the information I provided helps. Please keep me updated upon your experience as I would be interested in learning how the different strategies/methods proposed actually work in the field.

 Michael, 

  I will for sure keep you up to date on how things work moving forward. I can tell it's going to work well, just by starting this discussion I have already learned a lot and met some great contacts. I will make sure I post the first deal on the forums. 

Post: 50,000 line of credit

Ty DowningPosted
  • Lender
  • Ponte Vedra, FL
  • Posts 28
  • Votes 5
Originally posted by @John Horner:
Originally posted by @Ty Downing:

Starting a small business and the bank is willing to loan up to a $50,000 dollar line of credit with possibly a $50,000 dollar credit card. Interest rate on the line of credit is 1% plus prime and 5% plus prime for the card. Thoughts on what type of investing I should go from here ? I originally thought fix and flip with the line of credit, but am open to hearing about other creative options for Jacksonville, FL. Thanks in advance.

-Ty

 This is impressive for no RE experience.  What banks approved you for these?

 John,

  This is still in the works, the line of credit is pretty much done but we are working the credit card out still. It's through Navy Federal Credit Union. Maybe a perk of being in the military? I'm not sure.

Post: 50,000 line of credit

Ty DowningPosted
  • Lender
  • Ponte Vedra, FL
  • Posts 28
  • Votes 5
Originally posted by @Michael Johnson:

@Ty Downing thank you for creating this discussion. I side with the prespective that a lot of others have already provided within this forum; however, I did not hear the obvious/ traditional beginners method/approach mentioned.

That method/approach being: 

1.) obtaining a good deal which equates to me at a minimum of 10-15% (the more the better) below market value based upon CMA (this approach protects you in the case of a slight market downturn)

2.) utilizing the business line of credit of $50k to make the 25% down payment (this down payment helps enhance the profit spread you will be able to collect each month in rent from your tenants minus your mortgage and loan repayment)

3.) Focus upon generating cash flow & actually build lasting wealth. You are ahead of the game in the fact that you have the cash on hand to make the 25% down payment.

**keep in mind that you will need 6 months reserve in your primary residence+ 6 months on your investment property **

 That's not a bad strategy to look at ... Sometimes we get so wrapped looking at being an all cash buyer that we look over other strategies. 

Post: 50,000 line of credit

Ty DowningPosted
  • Lender
  • Ponte Vedra, FL
  • Posts 28
  • Votes 5

Thanks @William Byers , I will try and reach out to @Erik K.  about the meet ups. I didn't even think about the seasoning time with refinancing, that's something to think about. It's good to hear that the deals are still out there in Jacksonville. 

-Ty 

Post: 50,000 line of credit

Ty DowningPosted
  • Lender
  • Ponte Vedra, FL
  • Posts 28
  • Votes 5
Originally posted by @David Truong:

Rentals sound doable and people have done it before. You would just need to make sure you get the house at a good deal and be sure you can refinance. It sounds like a good strategy as long as you get the numbers down.

 Thanks David for the vote of confidence. I will start my search then.

Post: 50,000 line of credit

Ty DowningPosted
  • Lender
  • Ponte Vedra, FL
  • Posts 28
  • Votes 5
Originally posted by @Sam T.:

You may be able to fund the purchase with hard money and use the credit for the rehab once you have enough capital you will be on your own. I was also interested in hearing more about what steps you took to establish the line of credit? I am currently trying to build business credit and any advice would be helpful

Thanks, Sam

 Sam, 

All I had to do was form a business with Florida and apply for a small business line of credit. I happen to have a steady income between my Wife and I plus we have great credit. Bank seemed fairly happy with this and was willing to extend a little LOC. Hope this helps.

Post: 50,000 line of credit

Ty DowningPosted
  • Lender
  • Ponte Vedra, FL
  • Posts 28
  • Votes 5
Originally posted by @Account Closed:

buy yea and hold for what? how are u going to pay ur loan and card dues monthly, rent out the property u are holding? cant think of any other way, unless u have alot of steady income coming in which case where is the savings of it so far since u didnt mention adding any savings to ur loan.

 I would rent and refinance the house after rehab, take the money out and pay off the line of credit. Rinse and repeat with the next property.

Post: 50,000 line of credit

Ty DowningPosted
  • Lender
  • Ponte Vedra, FL
  • Posts 28
  • Votes 5
Originally posted by @Account Closed:

50 to buy and up to 50 to fix all the meanwhile meeting the monthly payments for each?

flip.

 Assuming the rehab will be 50k it could be expensive paying two bills like that a month.  I suppose flip seems like the immediate answer, but I know there is a way to do some buy and hold with this method as well, just gotta get creative.

-Ty

Post: 50,000 line of credit

Ty DowningPosted
  • Lender
  • Ponte Vedra, FL
  • Posts 28
  • Votes 5
Originally posted by @Fred Brauneck:

I'd say buy foreclosures and other deals at courthouse auctions (In my town they are every Tues morn on courthouse steps). Then put some money into rehabbing them, and soon as you can, flip them.  

@Fred Brauneck

 I hear you on the buying low just to flip. But do you see any downside to just holding them and renting them after rehab ? I think after you rehab you could just refinance them and pull out whatever equity you put into them ? Maybe I'm missing something?