All Forum Posts by: Nicole A.

If you know of a good property manager in the area and you know the cash flow is there, it could be a good deal.

I use this calculator when determing potential cash flow:

http://www.goodmortgage.com/Calculators/Investment_Property.html

Plug in asking price as worst scenario. If it's cash flowing at asking price, it could only get better.

Otherwise, perhaps you could find something in the area you're going to. There's always another deal.

How much is the amount you need? $20K? $50K?

You could ask people you know personally for a loan.

Yeah, why do you pay heat? Does that not come in the same bill as electric anyway?

I'd only consider paying water...and maybe bump up rent a little bit to help with that.

If you like Maryland, you should check out Baltimore COUNTY. Places such as Dundalk and Middle River. You can get good rentals for an average of $100K there...probably less.

I'd use the $100K to pay the downpayment on several properties and mortgage the remaining amount.

Do your homework and use this calculator to be sure it'll cash flow. I always plug in asking price as worst case scenario.

http://www.goodmortgage.com/Calculators/Investment_Property.html

Yes! That's right, Steve. I have done that. Basically, we're like detectives. :-P

Just remember, a credit report shows much more than a score. Most of us are looking for delinquent accounts. Plus, what if they tell you they have no credit history, so you take their word for it...but in reality, they do indeed have (bad) credit with tons of delinquent accounts? It's all about finding out the truth and not trusting any "sob stories".

I'm sorry, I'm only speaking from my experience and that's the market I work with. Typically, people making six figures have some sort of credit whether it be a car loan, credit cards, etc. But yes, I know that's not every person.

Again, no, credit is not the only determining factor for many landlords...especially private landlords. I'm not sure how different it is for large apartment complexes.

You sound like you're asking this as a renter. Are you having trouble renting because of no credit?

I have spoken with them, but not used them (or any hard money) yet.

Oh, ok! Well, like some of us were talking about, depending on your market, credit isn't always the best factor to look at. In a working class/low income area, many people don't have good credit or they don't use credit cards. Some don't even have bank accounts!

So what you look for is rental history. Look for past evictions. Look for judgments against them. Be diligent in checking past landlords (not just one if they've moved around). Perhaps ask for paystubs to know they make enough to make rent. Stuff like that.

I do credit and background checks, but mostly just to see if they conveniently left something off of their application questionaire.

Hi Shawn. I highly suggest you go to the next Baltimore REIA meeting.

http://www.baltimorereia.com/

There are members there that are hard money lenders.

Also, you could contact Hard Money Bankers out of Columbia, MD.

http://hardmoneybankers.com/

Do you have any credit cards with a limit of $20K or close to it? If you're getting those 0% checks in the mail, you could maybe use one of those.

Finally, since it's only $20K, do you know anyone who might have that money in a savings account or something? I borrowed $20K from a friend and offered him $100/month for 3 years. After 3 years, I owe him the $20K back. We also have a Promissory Note. I proposed the idea by showing him the numbers and why it would be a good deal for him with no involvment, and little risk.