All Forum Posts by: Dan Mahoney

@Lance Luvaul The first screening for credit cards is usually automated.  When you apply for a card you can get instant approval if you meet the criteria.  If you do not get instant approval, it's often because your application has been flagged for a manual review.  Even in that case, I don't think the distinction between individual and AU tradelines is going to matter much.  I don't think it will matter much for conventional mortgages either.

Good luck with the application!  If you don't get instant approval, google "recon line" or "reconsideration line" for your card issuer and call to check status.  You can sometimes convert a rejection into an approval if you clear up their concerns over the phone.

@Lance Luvaul I'm guessing your Dad's account has been open for a long time, has a reasonably high credit line, a reasonably low monthly balance relative to that credit line, and no history of late payments.  If so this establishes a good long-term credit history for you.  To credit scoring algorithms it looks like you've used credit responsibly for as long as your Dad has.  If a human being actually reads your credit report, they'll see that it is an authorized user.  It seems to me that the opinion of human beings matters a lot less in credit review than it used to.  It's more a matter of getting the black box to calculate a score that meets the minimum requirement for the loan program. 

@Ingrid B.  Trust your instincts.  If you feel you are being sold something, you are right to be suspicious.  In general, if someone approaches you to sell a financial product you were not actively seeking out, it's not likely to in your best interest.  

The financial services industry is, above all, a powerful sales machine.  We all need financial products but we get better results if we take the initiative to research the best solutions for our specific needs.  Be a proactive buyer rather than letting yourself be sold.

I also have a clarification regarding @Tyler Mullen's comment.  It is certainly true that wealthy clients get preferential treatment from financial services companies.  But that's not what you're being offered.  Chase Private Client is what the industry calls a "mass affluent" offering.  You get some perks that aren't available to entry level clients but it is not a fundamentally different experience, nor will anybody "drop everything" for you.  To use an analogy, it's like being Silver Elite with an airline.  You get some recognition and perks but you're still riding in the back of the plane.

@Ingrid B. 

Some of the banking perks are nice (waived fees, free equity trades, ATM fee refunds, better credit card rewards, lower interest rates).  

The wealth management offered by retail banks is usually high cost and low quality.  Many of the costs are hidden inside the products.  Be careful what you let them sell you.

I'm not talking here about the high net worth offerings from JP Morgan Private Bank or Goldman ($10MM+ minimum investment).  That's an entirely different deal.

@Account Closed  Don't overthink this.  Just pick something and move on.  

But since you asked for opinions, I'd go with "Companies" because it sounds more proactive.

@Account Closed This is going to vary significantly by locality and is usually not known with certainty in advance of buying.

In many places, you could get to a reasonable estimate by assuming the property gets re-assessed based on the new purchase price and then multiplying the updated assessed value by the millage rate(s) for your area.  But each state has different rules and counties and municipalities have different policies within states.  And local governments don't always enforce their own policies consistently.  

Sorry if this isn't the answer you were looking for.

@Rob Barry Got it.  Yes, paying a buyer's agent is unusual for single family home purchases in the U.S.  Sellers customarily pay the commissions for both the listing agent (who lists the property) and the selling agent (who introduces the buyer to the property).  That said, I can understand how having an independent buyer's agent would be valuable to an overseas investor.  I can't answer for you whether this service was worth $7,000, but it seems high to me.  

Even with the fee, you will earn a good return on investment if your assumptions for rent, vacancy and expenses hold up.

@Rob Barry As an Atlanta-based investor, this investment looks pretty good to me.  I am curious about three things:  

1) $10k closing expenses seems high on a $77k purchase.  I'm imagining $1-2k in attorney/title/closing fees (for a cash deal) plus a few hundred here and there to get utilities turned on.  Usually seller pays commissions.  What am I missing? 

2) 8% all-in for property management seems low at this rent level, especially without a separate line item for maintenance & repair.  And no lease-up fee?  Maybe that was in this miscellaneous items in #1.  Anyway, I would be surprised if your all-in property management cost were this low over the next 12 months.

3) HOA is $150 per year or per month? If per month your cap rate will be lower than you calculated.

All the best!  I hope this is a good experience for you.

@Chase Beasley Yes, I would agree.

@Tom Qiu   It's up to you.   If you want the owner to redeem, you can send them a letter explaining their options.  Or you can try to find their phone number and give them a call.  The Sheriff would have notified the owner before the tax sale.  You don't need to notify anyone unless you are trying to foreclose the right of redemption, which you can only do after a year has passed.