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update on house situation #5

January 17th, 2014 at 12:33 pm

Hi all,

no big update yet.

I hear today on all the rest of the lenders. FINGERS crossed for a lower rate/cost loan.

Current front runner is 6 pts, 12%, 2 years (expensive)

I can refinance out in approximately a year though.

I will work on lining up business credit as my next activity after the house settles in some way. IF I had business credit I might have been able to do this cheaper or easier. I AM applying for a business credit loan (I have an LLC) at between 5-9%. Had my accountant write a business plan, financials last night. PRAYERS that works. that will significantly cut my costs. (will likely take more time though to get a 'final approval' but hoping for preliminary news today with 'contigent on.. blah blah' If we can get approved. I am sure my accountant and I can come up with whatever doc needed. (but I have the past BK and foreclosure. ) we will see

I work 'at work' today and have a 1 on 1 with my boss today.. I work at home 2-3 days a week which has been a LIFESAVER during this process.

Looking forward to getting good news today and making decisions.

NEED the house to appraise out at $470.. will revise my loan with the 6 point, 12 % , 2 year guy to $470 so BPO person has new target to reach.

Thanks for all your support. Today and the BPO or appraisal day are the next big days. HUGE days. After the appraisal is when I will know the actual loan amount.

Posted in Short Refinance | 5 Comments »

5 Responses to “update on house situation #5”

  1. Another Reader Says:
    January 17th, 2014 at 02:07 pm 1389967626
    1389967626

    What is your business plan? Why do you need additional credit? In your shoes, I would have a hard look at the negative aspects of leverage (especially given what you have recently experienced) before I took on additional debt. Clean up the mess first and write out a reasonable five year business plan. See how much you can accomplish without adding debt.

  2. Rachael777 Says:
    January 17th, 2014 at 02:22 pm 1389968521
    1389968521

    Agree w need for 5 year plan and I am revising that. You are pretty sharp.... many good clear suggestions (no bull shit.. I like that). The business plan we sent today was specifically for this loan. Business credit can be had at 5-9% right now.. so much lower rates than hard money.. but not looking to buy more homes any time soon.. just establishing creditworthiness is always a good idea and had it been done PRE this situation would have landed me a lower rate. Also coudl be avail for sudden issues if needed (massive issue with homes.. cold float me so I do not lose them.. I already have that pretty well secure but you never really know.. no pronblem w having credit avail if you do not use it). It Still Might help though w this house situation. I should hear TODAY if they ahve any interest on funding this deal for 18 months.. Advantage.. no points.. less fees.. and lower rate. Still plan to refinance out in 18 months. I get that my SUPER aggressive plan is risky but I think I have great rewards at the end and appreciate any help or fine tuning along the way. Thanks for your feedback.

  3. Another Reader Says:
    January 17th, 2014 at 03:00 pm 1389970848
    1389970848

    Your house is not a business asset, so I'm not sure how you could obtain business financing on it.

    My suggestions on how to rebuild might be too radical for your taste. I would consider the short term hard money loan with the lowest up-front fees. Then I would sell your house after closing (as a flip) and use the proceeds to buy two or three more free and clear rentals. I would move into an inexpensive rental and throw everything at building the portfolio until I was able to finance a house for myself on reasonable terms. In two years, I think you would accomplish a lot.

    My impression from reading your blog is that an expensive lifestyle is important to you. In your situation, the expensive lifestyle is a big drag on building your portfolio. In your shoes, I would look at reducing the lifestyle to build the portfolio.

  4. the deacon\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ Says:
    January 17th, 2014 at 06:17 pm 1389982622
    1389982622

    Well, sounds like you've got a lot on the table to wade through. I wish you a productive long weekend! With a sound decision as an outcome.

  5. Another Reader Says:
    January 18th, 2014 at 03:13 am 1390014806
    1390014806

    Did you get answers from the lenders today? You have really fought your way through this, it would great to get this last big obstacle out of your path.

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