All Forum Posts by: Menalik Archer

@Luis Morales

Hey! Thanks for following up. Since this post I've flipped 4 properties and own 4 rental units. I've used my business credit cards to finance the purchases and rehabs. As @Nicole Heasley Beitenman started, you have to be very strategic and have an exit strategy in place before the interest kicks in. At the moment I have over 6 figures worth of credit limits. At the moment all of my cards are past the introductory period so I only use them for every day purchases and pay them in full every month. I don't use really personal cards for anything anymore. Hope this helps!

Here's the back story:

I contacted this bank that does under 50k mortgages. I told them that I'll be using a mixture of cash and a personal LOC to cover the 25% down payment and closing. They agreed that was fine. I went ahead and started the loan process. I paid $700 for the appraisal. and $2500 earnest money. A couple of weeks later, the loan officer calls and says I can't use my unsecured LOC. Only a secured LOC would be accpeted. I asked if I could use a gift. They said yes. A week later, I get a call saying I can't use a gift because it's an investment property (according to underwriting guidelines).

I have the cash available but it seems like they don't want it lol. Mind you, i own three other rental properties free and clear, all under 50k so I can't do a cash out refi on them. I've reached out to several people in my network, but none have the cash available.

@Chris C. If I could, I would of course. I trying to scale up by leveraging now since i used all my cash of the other properties. I don't own a primary residence anymore to pull a heloc. I sold it, cashed out, and bought rental properties.

@Ryan Ingram My partnerts are locked up in multiple deals at the moment. no cash available.

@Shaun Weekes This is a conventional 30yr mortgage - traditional purchase. If they say I don't have the cash to close (even though I do with some funds being from my LOC), I can get my EMD back? I have a 10-day inspection period which has long passed. Let's see if the bank will take fault for providing me with the wrong expectations of getting this closed. If they won't, I pretty much lose my deposit.

@Account Closed

I've reached out to the masses. Nothing yet. 

I have a duplex under contract for 48k. The bank I found that does mortgages as low as 30k tells me (a month into the process) that I can't use funds from my LOC or a gift to supplement the closing costs. They told me I could in the beginning. I don't want to lose my deposit. I've spoken to several hard money lenders and private lenders but they will not lend less than 50k. Any recommendations on who will work with me to get this closed quickly?

The neighborhood is going through a massive development phase right now. Literally on the same street there are close to million dollar homes if not a million dollars. There are only about 5 original small houses left including this triplex. Asking price is $390k. 2/1 is vacant, 2/1 rents for $1300, studio rents for $800. Both are month to month. Did a walk through today and it needs new bathrooms, kitchen cabinets and appliances, Windows, paint, and landscaping. The Roof, water tank, and HVAC are fairly new. ARV is around 450k on the conservative side.

I've flipped a few properties with a couple in the 500k-600k range.

Buy and hold. There are current month to month tenants but I'm going to contract a marine crew housing company to rent per bed for yacht crews since it's close to the water. My partner is doing this with a triplex in the same neighborhood. 

I have my eyes on a triplex in Florida and looking to see if there are any reputable hard money companies willing to do around 10% down. Looking to close on our before 7/27/18.

I invested over $90k in two rehab projects with a partner. I'm acting as the silent cash investor but with my rehab experience I've put in my two cents and called some of my contacts to work on the house. The first house sold and I didn't get my share of the profits because my partner said she didn't make enough from the sale. I just got my principal back with an IOU for the profits. We just completed the second rehab and it's currently on the market. The contract between us says that I have no claims to the property and that I'm a silent investor. With that being said, I want to make sure I get paid all what I'm owed at closing as promised. Am I able to file a notice of interest on the property? I really have no recourse other than to file a lawsuit for non payment. Any suggestions?

A friend of mine is flipping a couple of properties and she was looking for some private capital. I reached out to my network of private investors and connected them two together. We agreed to a small finders fee after closing. I mentioned this to another flipper in casual conversation and he said what I did was illegal and that I needed a broker license. Is this true?

Thanks for all the suggestions! They will not really be active partners. I'll be the one doing all the heavy lifting: finding the property, guaranteeing the loan, sourcing property management. They will just collect a check because they have money in the deal.