Realtor · MD · Member since 2020 · 34 posts · 20 votes
Hi BP friends,
so i'm looking to possibly keeping my first rehab. full gut now completed. looks amazing.
PP 175K ARV 300K RENT 2100K. I already have a couple people interested in the property.
located 3 miles from DC area.
So i quit my career 5 months ago and went all in. Finished my first rehab and looking for another way out
of the hard money loan without selling it. I have no income coming in except another rental property. little cash flow.
credit score plummeted after the purchase of my investment property sfh. How can i refi and cash out if i have no income coming in? just started my new career in real estate investment and all my money is tide up in this flip. I do have a lot that i am about to sell for 35k so thats some income. Any help would be much appreciated and thank you in advance.
@Randy G. Things were sounding good until you said your credit plunged. We require a minimum of 640 and the interest rate improves the higher the score. If the score plunged because you maxed out your credit cards (not because of late payments) then sell the lot and pay down the credit cards below 50% of the credit line. More is better. Credit score should bounce within 30 days.
Having quit your job conventional options may be difficult, but it's worth a shot with some local banks. Preferably get recommendations from investors in your area, they might know more investor-friendly banks.
If that doesn't pan out, a number of hard money lenders have long-term products. They will almost definitely be more expensive than conventional long term loans, but it'll be cheaper than the short term product you're in and might be able to tide you over until you're more bankable.
You can also see about taking on a partner who is more bankable right now.
@Randy G. Things were sounding good until you said your credit plunged. We require a minimum of 640 and the interest rate improves the higher the score. If the score plunged because you maxed out your credit cards (not because of late payments) then sell the lot and pay down the credit cards below 50% of the credit line. More is better. Credit score should bounce within 30 days.
I see you will sell. Not a bad move considering the end goal was that. Let me know if I can be of any help in your future real estate transactions. Stop using the credit cards get a credit line.