All Forum Posts by: Nicole A.

Hi Jeremy! Thanks for your reply.

For my first purchase, I actually did use my personal USAA card for some costs and then created a Promissory Note between myself and my LLC.

My current business credit card was just 0% on purchases (I'm pretty sure). I'll look into Discover, thank you. I wonder if any banks offering 0% on purchases would switch the deal to 0% checks if you called and asked.

This year, I did LLC taxes for the first time (we formed in 2012). I used TurboTax and did it wrong. I was/am on a steep learning curve and did not even know that we members had to claim any profits on our personal taxes (even if we didn't actually take that money out of the LLC).

Anyway, I just had a CPA amend our taxes and my partner and I are each getting a refund.

What do you guys do when you get refunds? Do you keep it for yourselves or is it a better choice to put that money back into the LLC since that refund is because of LLC finances?

Yeah, I forgot about the personal guarantee part. However, I have asked my bank about a "limit" and they basically said "if we look at the numbers and it looks like it'll work with little risk, we'll loan to you". I have been dealing with Susquehanna Bank, which is located in MD, PA, and I think DE.

Hello!

I'm a fairly new landlord/LLC owner. We formed our LLC in May 2012 and closed on the first duplex in August. In April 2013, we closed on our second duplex.

A few months ago we received a business credit card for $15K. We didn't even apply for it really...the bank just kinda gave it to us. That was great.

Now I'm thinking of how to secure our 3rd property. I've been getting a mortgage for each so far and must pay 25% down. The good part is that down payment doesn't have to be vested. I could put it in my account weeks before closing and they haven't cared.

So, my thought is using a 0% check to help pay for the next down payment. But I think I need more credit than this current card. I'm thinking I don't want to max out the one card I have. Do you all suggest any good business cards to apply for that may have the 0% checks? Is there anything I should do with my personal credit to help the odds of getting more business credit cards? I have good credit, always pay on time, but I have some revolving debt.

Thank you for your thoughts.

I've been using https://www.tenantbackgroundsearch.com/, which I think is connected to the MySmartMove site and I came across an issue. One lady was going through the process of verifying herself and the online system basically said the info she gave could not be verified. I called the company and they said that she didn't have enough background to answer the systems verifying questions. Instead, she'd have to send a copy of a recent utility bill and a copy of her ID or something. This seems like a hassle.

I'm renting in the Baltimore area and many renters have either bad credit or possibly no credit. Have you all run into my situation? I was hoping these credit/background check companies would just require plugging in her SSN, name, and birthday....but apparently that's not always enough.

I have a new applicant who I think may have the same issue of no credit background...and I don't want to run into this issue again.

I had a young lady apply with her bf for one of my apts. It's a 2 bedroom. She first told me on the phone that she had 1 kid. Then when we met in person to tour the place, she had 2 kids. Later on in that same visit she mentioned a 3rd child. I asked "so, how many children do you have?" She said 3 kids, but her 10 year old had said he wanted to stay in NC with his grandmother and she would let him if he wanted to. Yeah...sure....first, you let your 10 year old choose where he wants to live? Second, why won't I be surprised when the kid "changes his mind" and moves in with you....5 people in a 2 bedroom isn't legal. Next!

Yeah I agree with John's post. Are your current properties in a LLC? If you're running into banks/insurance saying you have too many properties, just start another LLC. Then it'll be like "starting over". :-)

For my second property, I borrowed $20K from a "private lender"--actually a friend--who had the money sitting in a savings account not doing anything. I offered him $100/month for 3 years. At the end of 3 years, I owe the $20K back...balloon payment, I guess. He happily accepted and we're 5 or so months in.

I like $100/month because it doesn't kill my cash flow (and I can save up for the balloon payment, but still have flexibility with that money); he likes $100/month because it pays way more than his savings paid! I showed him the cash flow projections using this calculator:

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

We have a Promissory Note, signed, notorized, and noted with the county so a lien shows on the property.
NOTE: while he gave the money before I closed (b/c this was closing money that didn't need to be vested), we did not put the lien obviously until after I closed on the property.

I'd like to try this tactic again soon, but right now I'm dealing with more vacancies than I'm comfortable with.

I know this is an old thread, but if the 0% intro apr isn't for those checks, why not try calling the company and asking if they'd offer that to you instead of the 0% on purchases? If they ask why, keep your answer vague...I wouldn't say "so i can buy properties".

My creative way--which may not work for everyone--was to have a loan with an individual who has the cash for 25% down payment. We are a LLC and the bank I work with does commercial loans when a business is purchasing property, so they require 25% down.

However (!), the past two times I've done a mortgage, they don't look for any "vested funds". I literally was putting the cash in the account days before closing. So, like I said, works for some banks...try smaller banks.

As for the loan, I borrowed $20,000 and offered to pay the guy $100/month for 3 years. At the end of 3 years, I owe him the $20k back. We have a notarized Promissory Note, and after closing on the property, I file the loan with the County so it shows a lien on the property. This is just an extra step to make him feel secure.

I offer $100/month because it doesn't kill my cash flow, yet his money is making a lot more now than it was sitting in a bank account. I've told others about this and others are interested in doing this deal with me too! Also, before I buy, I make sure the property has enough cash flow where I can save plenty of money to have at least close to the $20k after 3 years. I'm working in Baltimore County.