All Forum Posts by: Mark S.

@Adam Weisenburger, I use on business checking account as an operating account.  I currently use separate business savings accounts for each property for reserves (each business savings account per property is a combination of vacancy, repairs, and capex).  I start them at $0 at my local credit union and build them from scratch via rents.  If I ever have a repair before there are sufficient funds in a particular account, #1 my largest PM will take care of it with their 1-year warranty or 2) I will take it from the operating checking account where all the free cash flow sits (until I have enough to eventually start buying additional properties with it).  I have 5 SFRs right now.  If I get much bigger, I may rethink my system but it seems ro be working for now and let’s me see how each property is looking.  

Thanks, @Nathan Gesner

I’m not sure why they would ask me either.  My guess is because I have been asking for weekly updates and maybe they’re feeling “pressure” and want me to be the one to give the green light?  Who knows?

@Anna Sagatelova

Thanks, Anna. I know rental histories with pst applicants were also an issue. Trying to find out more info.

With all that aside, would you approve or deny this applicant?

@Ujwal Velagapudi

Hey, thanks for responding. I get what you’re saying. It’s a smaller house (just over 1,100 sq ft). My thought is why aren’t they getting an apartment? Is it because no one else will rent to them?

Am I able to ask the PM for more details on the credit report? Applicant’s age? Is that “allowed?”

Got email from PM stating they have an application on my 4/1 SFR in Memphis, TN. They want to know my thoughts on whether or not I want to approve applicant (they've since denied 3 other applicants for poor credit and bad rental history).

Applicant makes 3x the monthly rent. Works in healthcare as billing representative and has been working there for 3 years. No verifiable rental history and presently living at home (and has been for a year). Single individual, no pets. Credit score below 575.

Rent is $950/month.

Would you approve this application?

I asked the PM and they said they normally would not approve it (but it looks like they’re reaching out to me to see if I want to make an exception).

@Jonathan Allen, not yet.  I have a call with my tax team on Friday.  I let them know this is one of the items I’d like to revisit.  

I agree with @Nicholas Gessner.  Set for Life by @Scott Trench is fantastic.  That book would have likely saved me from making my “biggest financial mistake” of buying an expensive vehicle straight out of college (and so much more).

@Donna Pattani, sounds like you took an amount over $25K?  Are you at all concerned about the other terms and requirements?  Did they give you the entire amount in a lump sum or over several disbursements?

@James Allen

I am wondering the exact same things as you. I just watched the video that @Natalie Kolodij mentioned and it was somewhat helpful but I’m still torn.

Great financial loan terms vs hefty ongoing documentation requirements and other concerns.

At this particular moment, as much as I’d love to borrow money at 3.75% fixed for 30 years with no payments for 12 months, I’m leaning towards not taking it for peace of mind (that the govt isn’t “all up in my biz,” literally).

@Holly Qu

Was your amount over or under $25K? If over, are you concerned about any of the collateral language? What is your interpretation on how you’re able to use the funds?