All Forum Posts by: Andy Collins

I am a buy and hold guy, but in this climate have considered a flip or two (if I can get a good deal),,,but I watch those dumb "flipping" tv shows, and realized I can't flip because I don't drive a Lamborgini and it appears everyone that flips (based on the shows, LOL), seem to all drive them,

has the zoning changed in any way for the property.

In Texas we have special tax rates for "agriculture" land,,,there was a fairly large piece of land across from one of the oldest and the most expensive mall in Dallas (Northpark),,,,for years they had cattle grazing on it until they developed it to use the Agriculture exemption and pay virtually nothing compared to the real value for the land

Having several new loans (mortgage or cc) in a short period will hurt you some, because your average age of accounts is reduced.

Don't open any new trade lines for now and let your credit "age", that will help.

You want to pay off all credit cards before the statement hits, except one, have that one at less than 10% of the credit line,,,it seems strange but one cc having a balance is actually better than all reporting a $0 balance.

Watch inquiries, your getting hit with a lot for mortgages,,on TU there is a way to have them disappear,,on EX they will never disappear, and on EQ all except your mortgage inquires can disappear.

Never, ever open a store account to save the 10% or whatever on the first purchase, you get hit with an inquiry and have a new account reporting (reducing your average age of accounts).

You also want a good mix of credit, you have mortgages, you have cc, but also you want an installment account (car note, etc),,it seems funny but they like you having a good mix of types of credit.

The mix of credit counts as 10% of your FICO score, however the majority of your score, 35%, comes from payment history, then the balance on revolving will account for 30%, length of credit history 15%, etc,,

I use one of the wireless (uses cell phone technology and not phone lines) alarms I carry from house to house. I put one on front and back doors, one window, then I put a motion detector in a weird place (in one house I sat it on the stairs every night),,,,if someone gets in it alerts me and they call the police (I change the address when I move it from one to another project, I never have more than one going at a time.

I use the kwikset smartkey, I have heard they are easy to break into, but most break ins I have seen involve a door or window being kicked in

andy

If your sure you can pay off when it starts to adjust the ARM is fine, but I hedge my bets and go with 30 year, the difference in monthly interest is very, very little at that amount, and you have flexibility if you get in a cash jam doing a project.

If it has good positive cash flow with pulling out the $15k, and you have a money making use for it, I would take the cash out,,,I want as much 5% money as I can get with rates set to rise in the future,,,,in fact i would do 30 year and not think about paying it off for awhile

Don't think that this is the last time you will get a little "buyers remorse" before closing,,,,I don't do it every time, but more often than not I start questioning the deal (or comparing it to deals a few years ago, when there is no comparing those deals to today).

It means your not 'in love' with the property,,that's when people make bad mistakes

andy

4 points and 10% interest sounds more like hard money rates (but the 10% is good for hard money),,,I think you can find 6-7% from what I've seen.

andy

there are people that will take advantage of you in every profession,,,he will quickly run off contractors and end up dealing with the contractors no one else wants

you financed the property in your name,,,do you manage it? did you have anything to do with the rehab?

Chances are putting it into an LLC will do VERY little for asset protection,,,get an umbrella policy with several million in liability coverage.

Putting a property in an LLC is not the 'silver bullet' people tend to think it is

I would think there is more to the story,,,like the fact that they didn't make payments,, that normally precedes foreclosure