All Forum Posts by: Mike M.

My credit union financed two of my properties (one on initial purchase and another was refi'd). Plenty of ARM products but only a 15 year fixed. Probably 1.5 points above conventional financing with a personal guarantee.

I did it on best guess. And I don't guess very well :( I'd like to see responses as well. Ultimately I just failed to account for a lot that should have been obvious but I mentally discounted on my walkthru. Doors, trim, and fixtures probably cost me 4-5 grand that I just overlooked. There was plenty of other items as well. Next time I will have a more regimented evaluation structure. One huge benefit to doing it once is that I have a data point on cost and a more developed understanding if what a rehab really is.

I assume you'll need a bank account first. Get an EIN from the IRS and bring your certificate of formation for your LLC to the bank. This will probably be good enough to get an account. It was for me. Getting a loan in the name of your LLC is much like any other personal loan, assuming the bank asks for a personal guarantee. I would expect that the bank will require an operating agreement, especially with four members (mine did and I am the only member). Expect several ARM products and a max 15 year fixed product. Probably 1.5-2 points higher than conventional mortgage. I've done a $28K loan plus a $105K refi with no problems. Bank didn't require any seasoning on refi (done three months after purchase).

I think it would be wise. You and your partners should spend a lot of time developing the operating agreement and company policies. I would imagine things could get difficult with four opinions of equal weight.

Build a tile front on the sheetrock? Install thin gauge stainless plate (maybe with insulating backer) on sheetrock or in place of? Convert to electric?

Why not buy conventionally at 80% LTV? The cash purchase/refi is great when the as-is and as-refi'd values are significantly different. If this needs no work why close twice unless your seller has to have a cash offer? I would run your own comps because I haven't met a seller out of the 100 I've talked with that had a realistic idea of the value of their home (at least not in our discussions). The bank is going to take the appraiser's value as gospel. Once you purchase cash you're committed so be prepared for a lower appraisal.

Appreciate all the feedback.  My application does include SS#.  Better to have it and not need it versus the alternative.

I'm going to use SmartMove for my credit and criminal background checks.  I'm finishing up my paper application now and wanted to know if it made sense to record the applicant's SS number on the application?  Obviously one benefit of SmartMove is that personal information is kept personal.  I think I want it on the application to assist with obtaining judgments and other legal proceedings IF SS# is used for such.

Questions:  1) Is a SS# necessary for judgment recording (say, for damages or unpaid rent); 2) What do other SmartMove users record on their paper apps?

Thanks much.

If you're just walking through, do you really need to disturb the tenants? I would assume small talk about the property is fine, but critical tenant information won't be necessary until after a contract is signed. I'd focus on the asset you're buying; tenants come and go, but you get what you get with the building.

Sounds like you need to, just to keep your sanity. If the dog is a huge risk to the home and you don't want to consider any alternatives, it is time to make them comply or find a new place to live.