All Forum Posts by: Account Closed

Rey,

Remember that pre-foreclosure means prior to foreclosure. More or less defined as the time before a formal notice is served to the public.

The implication is there is nothing public you can find. The borrower and the lender might be trading phone calls or mail but no one has been put on public notice so there is little that you can look up.

As to being from HI. Great state. Consider searching for other BP members who are from HI. You can then pick up on some local knowledge or otherwise network with them. One of the BP experts for property management is also from HI. Beachbum is the ID he uses. You can find a number of his posts where he offers some great suggestions on materials, management tips, how to screen tenants and other things. He can also offer some local info on HI market conditions.

Many mortgage brokers do not know what they do not know.

Others are really saying that they have no access to products that fit the bill. Not that it is actually impossible. Just that they can not get the job done. Rather than say it is all about what they have access to they claim it does not exist.

Then there are the mortgage brokers who know the solution exists but it is such a low probability solution (most LLCs will not qualify) the MB made a decision not to offer such a product. Some tell it straight and others find it easier to spin and claim it is impossible.

As others have noted an LLC with limited credit and no assets is just not a good risk for a lender unless there is something like 30% to 40% cash put down. Real cash and not a smokescreen loan which results in the property having a second.

Think of an LLC like one thinks of a child. Age, experience, income and track record matters. A 1 year old child does not make for a good credit risk. Why would a 1 year old LLC with similar prior credit history?

Brian,

A great summery. I expect a number of folks will benefit from it. Thanks for sharing.

Eli,

Welcome to BP.

This post shows up as being your first. I suggest you start a fresh thread in the New Member area where you introduce yourself to the group. Focus on some personal details so people get to know you a bit.

For some aspects of credit there is no fast track. Part of a credit score depends on seasoning of the accounts. 3-5 accounts that are 3 years old or older. Hence you need time.

The other advice is good. You start by starting and secured credit, low credit limits and other things are what works.

As noted you can start building business credit also. That does not mean that business credit is the answer. It is just another tool in the toolbox and it is less closely tied to your personal history. A closer tie when you start and little real tie after the business is established.

Marc,

Thanks for sharing.

Many people who understand personal credit think that business credit is a black art. That they need to pay someone else to wave a wand.

I will take a look at your website. It is great news that for those who want to put in the time the info is there for free.

Hopefully your goodwill is paying karma points or otherwise helping you.

Good luck

1. Provide some info here so people who are reading the thread will benefit even if they do not read your blog.

2. To display your blog or other things just update your profile. Check the house rules for what you can say and how the information will be displayed. You can get a 1 line entry after your name and company if you check the box so all show.

1. Provide some numbers so people can work with something that makes sense to you.

2. At some level just ignore the fine points and outsource the details to an accountant.

3. The tax impact on a short sale did change when Bush signed into a law a bill that will result in no taxes being due on the debt forgiven. The law only applies to owner occupants so it does not help the person who has a rental. The owner occupant does not have to worry about depreciation in the first place as they are not holding the place as a rental. Investors can take depreciation.

It depends on what you want to accomplish.

If you need to build ASAP a cash purchase might be suggested.

If you want to do a deal subject to planning permission being approved you really should be looking at an option until the dust has settled.

So, why the question? What do you want to accomplish?

FUD - Fear, Uncertainty and Doubt. It kills off a lot of people who say they want to get started.

Stop focusing on buying and the end state.

Start looking at properties and doing the things investors do. You do not have to buy initially. As Mike-OH will say you need to view a lot of properties in the same area so you can learn the value. That means viewing the properties, checking net, the newspaper and talking to local investors. Once you really know the market you will be very confident when you spot a deal.

REI is a long term race so moving forward is important. It does not mean you need to sprint to the finish line in the first month.

Pacing.

Good luck.