All Forum Posts by: Pete Storseth

With all the Coronavirus inspired loans, backlogged refinance applications, and stalled mortgage applications for purchases, are lenders still taking applications for personal lines of credit?

I feel like they may just deny them for now out for necessity, but I'm worried that it may be much harder to get loans in the near future for investors.

(Side question, for newbie- is it a bad idea to have a line of credit as extra reserves in a time like this?)

@Michael M.

Some great info here.

@Neil Aggarwal

But you're saying in Texas the laws changed to where wraps have to be approved by the lender? That would mean it would be illegal to do a sub2 wrap because by doing so you only have two choices, dont tell the lender or have the note called due. I am aware that you could do things through land trusts and all but that just muddies the same dirty water.

I am increasingly pursuing sub2 in coming months anticipating that once the government lifts the foreclosure ban, there will be a swell of opportunity for sub2. But my strategy would be to wrap them. This thread implies that's not an option.

Where has this been reported? How recent? Or is this just a misinterpretation of the due on sale clause?

@Henry Derbes

I agree that the swell need for sub2 hasn't arrived yet, so I'm putting together my marketing in preparation for the stalled foreclosures to gush out once lifted.

I think that thought about landlords being underwater is a good point. All these threads and podcasts are talking about not over leveraging, but it's too late for that advice. Maybe sub2 would make sense for landlords with long vacancies leading up to now, knowing they may have problems renting for a few months.

But then, it would just transfer the debt and their problem to us unless we had tenant/buyers ready to go... more marketing to prepare?

@Kyle Altenau

That's right. Can you restate that? You had two points, the latter answered his question about scaling faster.

@Alan Mills

Hard money let's you use bridge loans, then refinance in as few as 3 months. No seasoning there.

@Jenny Roman

Really? Your perspective is different than others.

@Nick Rutkowski

That has never made sense

Buyers market swing coming up?

@David M.

Late response to your reply, but none of my credit cards have any interest, yet.

I have relatively recent accounts still in the 0% apr terms. I would consolidate them but instead with all the Coronavirus drama, I think I may just pay off the ones i can and apply for a line of credit to have some insurance.

I also think I'd better go ahead and get all this done this month before everything potentially changes and loans become harder to acquire and properties begin to drop in price.