Line Of Credit On Three Properties
Could anyone tell me whether or not should I get a line of credit on all three of my properties. I need money to buy more properties and fix them up. I have one property with atleast 25k, and a second property with about 36k, and last of all a third property with about 55k. By the way I what to a bank on friday and appied for a 50k line of credit using my third property with 55k in it. Please help I need to know if a line of credit is a good idea on all propertiesnull
I have a similar situation and was wondering the same thing.
Yes because you save on closing cost than if you do seperate and some lenders dont like small loans under 50K.
Only con would be if you plan on sell one which would tied to others. If there is a deal with no closing cost and the smaller amounts dont hurt your rate then do 3 seperate ones.
Just check which is the better rate or deal. To get credit line or just refi. Same you can tie the 3 together to save on closing cost.
When I put properties up for a line of credit, about a year ago, the bank loaned me 50% LTV, with a personal guarantee and the titles to my properties tied up. And I had to pay appraisal and closing costs of $24K on a 950K line
The rate, tied to the Wall St Journal prime rate, is now over 9%. Not such a great deal, huh? But, then again, this is the real world.
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Do You Have The $2,000?
Are Taxes Current?[ Edited by donotusecash on Date 06/27/2006 ]
Hey Panic, And Others
You mention serveral times to make sure there are no other liens or judgements on the property.
I ask this because I and a partner are thinking about trying to help a friend that is in preforeclosure ( going to sale in about 6 weeks ) get out of the foreclosure also. The friend does not want anything out of it , just to save themself from the foreclosure.
I do know there are a couple small $ amount liens on the property and some back property taxes due also.
I have a signed authorization from the homeowner , and have faxed to the mortgage company and the attorney handling for the mortgage co. to get pay off or re-instatement amounts, but if we should have to do a short sale, How do we handle the liens and back property taxes ?
Do we try to get the lein holders to release their liens , and catch up the back property taxes.
Any help on how to proceed with this would be appreciated. I must also say the leins are being paid through chapter 13 bankrupucy which will be discharged in about 7 months.
Any ideas or suggestions how to proceed in order to help friend. We are not trying to make alot of money on this , just help the friend out.
Thanks !
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"Problems Are Solutions Dressed In Work Clothes "[ Edited by rbjj on Date 07/14/2006 ]
Bump
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Keep it simple and do a straight up purchase agreement with the homeowner and either close yourself or wholesale it.
Bump
the bankruptcy trustee will prevent the property going to sale if they have a valid purchase contract from you. Just give them the contract & proceed on the purchase
When the NOD (notice of defaut) is filed, all subsequent transactions are inferior to and subject to the NOD.
It seems to me the property has been sold and is being rehabbed. If you buy it at auction, the mortgage company was not satisfied and you take over the property in whatever condition it is in.
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