All Forum Posts by: John D.

@Chris Mason  It sounds like this may be applicable to me.

If I purchased a bank owned SFR on June 9 using PML and plan on marketing it by the end of August, should the agent steer potential buyers away from FHA loans?

All things considered, I expect that once the sale closes, it will be past the 90 day mark.

Thanks for the info.

@Andrew Domingues I've been satisfied with my experience with Cozy.co   My only gripe is that it takes a few days longer than I would like to have availability of the funds (3-5 days) but there is no cost to the landlord.  

@Account Closed I believe it goes without saying. You should definitely try to keep your personal credit in order at all times. So the short answer to your question is...you should focus on both especially since it seems you have a gameplay for your REI career.

You mentioned you are not 18 yet.  One thing you can do is talk with your parents to see if when you turn 18, they can link your name to any of their credit cards.  I'm not saying they have to give you access to their accounts, but by having your name linked as an authorized user...you will be able to establish a score quicker.  I did this with my son who is in the Navy and he had a low 700 score around 4 months after his 18th bday.

Hope that helps. I wish I had started on my REI career when I was 18 ;)

You can establish your LLC and then open up small business lines of credit with companies like Lowes, Granger, ULINE. Those companies typically wont make you personally guaranty if you have an LLC and they auto report to D&B (Dun and Bradstreet), Experian business. Then make sure whatever purchases you make get paid on time and you can go to D&Bs website and sign up for their free or cheap monthly business credit monitoring to see the scores get created.

It's challenging at first but once you're established, it tends to snowball. Just keep in mind, most banks will want a PG regardless of your LLC so its difficult to get around that. Hard money lenders and private lenders are a different story and most require you to have an LLC set up and the loan will be made in the LLCs name.

I worked for D&B for several years and its a little different from the personal credit world.

Hope this helps and good luck.

@Andy Chen

+1 on what @Victoria D. mentions.

Spend the few bucks on both of J's books.  Very informative and worth the read.

If you go to meetup.com, you may find some area meetings. That's how I found my PA REI clubs.

Welcome to BP @Nick Loukas.

If I were in your shoes, I would go the duplex/triplex route and house hack. If B&H is your primary strategy...in my opinion that's your best move. Go get pre qualified for an FHA loan (only have to come up with 3.5% down money) and go to realtor.com and search the Valley for multifamily properties. There are some listed that provide good value especially if you are handy and can do some work yourself. Bethlehem is tough. Southside and Fountain Hill have some decent ones. @Jeff Stephens makes a good point that there are plenty of off market opportunities out there but you need to do a bit more legwork (D4D "drive for dollars" for example)

Get hooked up with the local REI meet up groups. Plenty of folks there willing to help.

Good Luck to you!!

Thank you @Moises Mari and @Michael Carbonare

Moises...What are your thoughts on doing a refi before entering into a lease purchase option with a buyer?  Does he have any options to obtain financing through a traditional source?  He can come up with around $10K in down money.

Thank you again.

We are working on finalizing our first flip in New Jersey and were approached by a prospective buyer who happens to be renting from us currently at a separate address.  He is interested in a lease to purchase agreement.  I am interested in hearing how the BP community would potentially structure this deal, what are some of the drawbacks?  Would selling property this way work out better for tax purposes? 

A bit of background on the buyer:

Good tenant..pays on time and takes care of the rental property he is in now.  No W2 income so he cannot qualify for traditional financing.  Has roughly $10K to put down toward the purchase. 

Comps in this area range from $130K-$145K.

I'm looking forward to any/all ideas!!  Thank you.

Congratulations @Sam Levine.  That's a great story.  I wish I could convince my wife to house hack.  I would do it in a minute.