All Forum Posts by: Vik P.

Well I just wanted to let everyone know that I pulled the trigger with Credit Card Builders. For $3000 I got 1 year of service for both me and my partner. I have to say, they did exactly what they said they would do. I received a seasoned business entity and $75K in first round credit, and my partner also got an entity established with $120,000 in credit in the form of 3 or four credit cards each. The next step is for us to "eliminate inquiries" and then they will apply for more credit. The credit is zero % interest for a year. I immediately paid off a higher interest rate HELOC and zeroed out the balance so that it was available for large purchase like a property again. If you don't have that situation, getting the cards liquidated into a cash account is actually not as easy as they lead you to believe. But still, I have $75K in credit that is not in my name, that I did not have before and the cards can always be used for paying for things like renovation materials and making minimum zero % payments until the property sells. Can you do this yourself? Of course you can. But the question is will you? I am working multiple jobs and only have so much time in the day. So its really a convenience service. I figured we will have made back the cost of the service with the very first property deal we do with the funds. Compare this to 12-14% interest HM loans and its really not a bad deal .

Mike,

I hate to burst your bubble, but what you will quickly find is that it is extremely difficult to obtain 100k in unsecured lines of credit, let alone 250k, even more so for a business. While Stanley seems well intentioned, unfortunately his outline doesn't stand a chance of actually working in today's financial system. This is a common misconception that is continually being passed along by misinformed "Guru's" and companies who earn substantial amounts of money "educating" clients on how to build business credit and obtain funding. I can't tell you how many times I've heard someone try and tell me this only to end up realizing that it doesn't work, you are not going to "trick" the bank into giving you 100k, for your company, unsecured. It's preposterous. I know this because I was in charge of the funding sales floor for what is currently one of the most profitable RE Seminar and coaching businesses around. Our role was to sell these services and to coach clients to build their business credit and obtain funding. I built our entire business credit building program and even published a 250 page book on the subject. I would be happy to email you a digital copy if you would like, but instead of boring you to death I will attempt to try and save you the time and energy of reading it, here's what you really need to know: 1) A paydex score is a very small part of what factors into any banks decision on whether to loan you money or not. In fact, most banks now are looking to experian's intelliscore and the equifax equivalent. These scores merely report how well your business pays its bills on time. A paydex score of 80 means that you pay on time. 2) bank ratings simply assists the banks to eliminate the pretenders from the contenders, if your company doesn't have at least an average daily balance of 10k or more over 90 days (low 5 rating) chances are your company isn't large enough to justify the expense of continuing the process of loaning you money- these are merely factors in qualifying your business for funding, in terms of how much the banks weigh these factors in lending you money is very minimal. 3) the two most important factors in securing funding for your small business are simple, demonstrated profitability and personal credit. That's it! If you don't have profitability, the banks will absolutely not lend your business money. However, if you have good personal credit, they will in fact lend "you" money to use for your business. This is where companies like CCB come in, they basically apply on your behalf to multiple banks concurrently for credit cards with your business name on them. They simply sort through the best introductory offers, understand to some degree what a certain banks underwriting criteria are, and know which of the three credit bureaus each bank will pull( you could apply for 9 credit cards and each bank might only see that you have applied for two others, which is a key factor in obtaining approvals) Understanding these factors is crucial to being approved. Most banks will let you apply for up to 25k in credit cards with unstated financials. These are not true business lines of credit as most people think of when they think of lines, because you are unable to truly liquidate these into cash without some sort of fee. The key difference here is understanding that the bank is loaning the money to you, not the business. You are in fact, personally guaranteeing that despite how well the business does or doesn't perform, if it cannot pay the minimum monthly payment, they will seek payment from you (typically after 90 days of default it will start being reported negative on your personal credit). Most all of these credit cards issuers do not report to the business CRA's unless it's negative. So where does that really leave you? Initially it simply means you are reliant on your personal credit in order to obtain funding for your business. Companies like CCG can be well worth paying fees to because they are able to aggregate the information of hundreds of applicants in order to know where to apply to and in which order on your behalf. If you are able to obtain 100k interest free for a year, and pay them 3,500$ to assist you to obtain those lines, you effectively have an 3.5% interest rate. Pretty good especially when compared to the rates offered by Hard Money Lenders. Here's the catch though, for Funding Real Estate deals, you need cash, you are unlikely to find someone who will accept 8 credit cards as a down payment- this is where understanding how to avoid paying over 20% in cash advance fees come in handy, instead expect to pay 3% of whatever you need to liquidate from the cards into cash. I'll be happy to explain more of how to do this to you in another post if you'd like. In fact, I'd be happy to assist you to obtain funding the same way CCB would at no cost if you'd like and as much time as I can spare for anyone else who would reads this in the near future. I will say, you will need to have a Fico score of 670 or better to obtain funding this way as well as a few other criteria, more info on that later if requested. Just let me know! 

You have a problem. It's a good problem to have though. I don't know if there are HELOC lenders that'll lend on non owner occupied properties.

I'm sure if you look hard enough your bound to find a lender that'll do a 2nd, but it's highly likely the rate they'll charge will make a refi look much more attractive.

But that's not why I posted in this thread. I'd offer that you should consider looking at your "problem" through a different perspective.

I'm going to assume your whole reason for wanting to buy yet another property is part of a larger plan to own a portfolio of rental properties. As an investor looking at growing a portfolio you want to be able to look at your assets, remember this is no longer your home, from an unbiased 3rd party perspective.

Now, I'd recommend you do a complete analysis of your investment property. What are the metrics? What are you earning on investment? Specifically what is your ROE (return on equity)?

Can you do better in that equity in another investment? If so what are your costs to gain access to that equity? Then with what equity is remaining will that invested in a different deal become a better investment?

If it would then I think you'll at least know what would be a better decision as to what to do with your existing investment. If it's not then perhaps you continue on your current course and maybe look at pulling out some equity after inputting those costs and reduced income and assessing those results.

Two additional thoughts. You're not losing anything if your increasing your return by redeploying equity into another larger property. Likewise, you will also not be losing if you recapitalize the current investment property by stretching the term at a higher interest rate so long as you leverage that equity into another deal that increases the overall ROE. Lastly, don't fall in love with real estate. To many investors get attached to their investments emotionally. 

Look at your investments objectively and make decisions accordingly.

Hi there,

I came across this post while searching for some information on mobile home park financing as I am also currently looking into one in ND. Its on a 10acre lot with 3 double wides on it and would bring in close to 6k or more in monthly rent.

The asking price is 475k and seller is asking for 75k down with the rest with seller carry at 10% with 25 yr amort (no baloon).The prop tax is between 2~2.5k and I will be hiring a prop mgr as I am out if state.

I wanted to check how easy it would be to refinance such a property say a few yrs down the road. I am also trying to see if I can get seller do 10% down with the rest in seller carry.

what do y'all think? Wanted to get a feedback from BP community

Btw this is my first post here..:)