All Forum Posts by: JM I.

Just to clarify my understanding of how they operate:

They apply for business credit cards on your behalf that report only to the business credit bureaus (e.g. D&B and Experian Business) with low 12-18 month introductory rates. There's still a personal guarantee (pretty much unavoidable unless you're operating a highly profitable and long established business), and the hard inquiry shows up on your personal credit report.

After applying for multiple cards, they somehow are able to dispute the hard inquiry and get it off your personal report. As such, the business cards and their respective utilization will have no impact on your personal credit unless you don't pay the bill. Disputing legit inquiries seems a bit shady though.

After you're approved for the cards, you can use Gold Money to get the cash out, but there's a transaction fee.

After doing some research, I determined which cards report to the correct bureaus. The only thing stopping me from doing this myself and saving a few thousand on their fee is the dispute process. Do they send certified letters? How does that work?

Mike Summey

I think it makes more sense to put that cash into another investment and draw on a line of credit for CAPEX when you need to. Of course, this depends on the interest rate and terms of the LOC realative to your ROI.

Those are 3-5 year term loans with a relatively high interest rate. If you know of any properties that will cash flow with a 5 year fully amortized loan, please contact me immediately.

You need to market this towards landlords who want a boost in rental income and you should be willing to cut them in on some of the profits. You might have better luck that way.

Has anyone ever toyed with the idea of doing this Airbnb thing with timeshares - those $1 timeshares that people want to get rid of because of the annual maintenance fee?

Equity Happens

 They allow you to add a partner for free. I just confirmed it with Mike at Fund and Grow, but I'm not sure how it would work without intermingling our personal credit.

Hi Donny,

Please check your IM's.

 It's Perl Mortgage. I think it's too late. I already signed the loan docs.

I'm in the process of buying my first property (a condo in the northern suburbs), and I close in mid-October. It will be my primary residence (not an investment) and I'm putting 20% down. My FICO is 804 and I was approved for a  rate of 4.125% on 30 year conventional. The selling price is $130k. I recently received the following closing fee breakdown:

Closing Cost Details

Loan Costs

A. Origination Charges

Origination Fee $1,095

B. Services You Cannot Shop For

Appraisal Fee $350

Credit Report $33

Doc Prep $17

Field Review of Appraisal $125

C. Services You Can Shop For

Title - Chain of Title $250

Title - Closing Fee $1,500

Title - Closing Protection Letter $100

Title - ILAPLD (SB 1167) $50

Title - Lender's Title Insurance $1,700

Title - State of IL Loan Policy Fee, State of IL Owners $3

Title - Title Update Search $125

D. TOTAL LOAN COSTS (A + B + C)

$5,348

Other Costs

E. Taxes and Other Government Fees

Recording Fees and Other Taxes $375

Transfer Taxes

F. Prepaids

Homeowner's Insurance Premium ( months)

Mortgage Insurance Premium ( months)

Prepaid Interest ($11.7534 per day for 20 days @4.125 %) $235

Property Taxes ( months)

G. Initial Escrow Payment at Closing

Homeowner's Insurance $30.00 per month for 3 mo. $90

Mortgage Insurance per month for mo.

Property Taxes $160.14 per month for 5 mo. $801

H. Other

Attorney Fee for Personal Representation $500

Condo Questionnaire $295

I. TOTAL OTHER COSTS (E + F + G + H)

$2,296

J. TOTAL CLOSING COSTS

D + I

Lender Credits -$357

Calculating Cash to Close

Total Closing Costs (J) $7,287

Closing Costs Financed (Paid from your Loan Amount) $0

Down Payment/Funds from Borrower $26,000

Deposit -$3,000

Funds for Borrower $0

Seller Credits $0

Adjustments and Other Credits -$1,655

Estimated Cash to Close $28,632

I know it includes some prepaids, but do any of these fees seem ridiculously high to anyone else? Specifically, the title fees.