All Forum Posts by: Tom S.

@Mike Campbell  I don't think I'm understanding where the "cash" is coming from in this deal.  It's a seller finance so say you put down 5%, or $10k on a $200k purchase and the seller holds the note.  The seller wouldn't have $25k cash, only the $10k you gave him for the downpayment, which I'm sure he would want to hold for security.

Unless you're giving him say, $50k down, and he'll give you $25k back?  

As a side note if you're not sure what it's worth, get it appraised.  You don't want to pay $200k or $225k when it's only appraised at $175k.

@Havan Surat  As others mentioned, very tough to get 100% financing.  Also remember even with a high amount of financing, the lender will want to see you have reserves to cover the project in case it goes over budget. 

You'll also need to "front" the initial work, and then you'll get reimbursed under the draw schedule of the loan.  The initial work can easily be $10-20K + before you get any money back.  And of course there's the standard closing costs of the loan, initial insurance payments, permits etc.  So be sure to factor all that in.

@Deb G.  Also try some of the local banks to your area. VT can be very specific to your county, so do a quick search of your area, or check with the banks or credit unions in your town.

Welcome to BP!

@Denis Ponder  I've also used SoFi, $50k at 12% (slightly high, but unsecured), no fees at all, no pre-payment penalties either.   The process was simple and I had the funds in my account in a few business days.  I only used the funds for about 4 months so didn't pay too much interest in the end.

Hope that helps!

@Swarochisa Kandregula  Just adding to the great advice posted above.  Even though there was a recent sale extremely similar to yours, they usually average at least 3 recent sales.  Also be careful with ordering a new appraisal, if it comes in lower, typically the lender has to use that. 

That happened to me one time, I wasn't happy with the desktop appraisal and paid for a full one, which came back even lower.  The lender said they had to use the new lower one if I wanted to proceed.

@Trevor Reilly  Thanks for posting all that info!  

Curious - why would someone go with this program and not use a regular personal (unsecured) loan?  There are plenty out there with no fees or points, or prepayment penalties.

As an example, I evaluated both SoFi and Discover personal loans in the past.  Both offered $35k to $50k, roughly 12% interest (not terrible for an unsecured loan), no other fees at all, 2 business days funding.  I went with SoFi, they funded it in the 2 business days as they promised, no issues at all.

@Tabitha Bean  Have you tried applying directly for any 0% business credit cards?  There a quite a few out there that don't report to your personal credit.  I've recently applied for both the Chase Ink and a US Bank business card, both with almost instant approvals and $10k credit lines each.  Both had at least 12 months 0% interest and no annual fee.  

Something to think about as long as you can get the work complete and the cards paid off within a year. 

Good luck!

@Matthew Morrow What are the potential tax benefits for holding a rental property in an LLC, that you wouldn't otherwise get?

@John Graves  John - any update on this potential deal?

@Travis Andres  The grammar alone is a red flag.  " rate is 4% fix with..."  I think "fixed" is the word he's looking for lol