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Save Thousands With Each Investment Property Purchase
hoa! That's quite a a little-known secret out there
claim!
that will allow you to get your
hands on some serious cash...to
But, hold onto your hats. I'm the tune of $20,000 to $200,000.
about to hand out a power tip If that got your attention, try
that will TIP the money scales in this on for size. What I'm about
your favor. What's more, it will to reveal can provide serious
do this transaction after investment cash, and won't ding
transaction and your savings will your credit report and keep you
mount! from borrowing elsewhere...in
other words it won't decrease
It's about saving money on what your ability to get cash-out
it costs to borrow money, refinance mortgages.
especially hard money. Let's face
it, hard money HURTS! It's crazy Okay, so here it is in a
expensive and like taking a punch nutshell...
in the gut each and every time I
buy a property. Whomp! There are lenders out there that
will extend businesses unsecured
On the other hand, if that's the lines of credit. The amounts and
only way to get things done, you nitty-gritty details vary, but
take it like a trooper and ask these well-known financial
for seconds. Hard money has institutions will happily hand
changed my financial life. Let's business anywhere from $10,000,
be clear about that. $20,000, to $50,000 in line of
credit capital. You pay on what
But what if there IS another, you borrow only when you borrow
better, cheaper way? it.
What if I tell you that there is I closed a property last week and
my loan about was $60,000. My short, if you need a company,
hard money cost me 4 points which make it so. It's easy.
came to $2400. This was for the
honor of using their money. In (2) You have to apply...with no
addition, the percentage rate was help. Lines of credit don't fall
$15%. Ouch! into the scope of mortgage
brokers, so don't ask. Contact
If I would have used a line of the lenders directly.
credit to pay for that property I
would have paid NO points. The (3) In most cases, these lenders
lender's fees ($600)...gone! won't report these lines of
Percentage rate, about 7.5-12. I credit on your personal credit
could have written a line of UNLESS you fall behind. So, don't
credit check and that would be let that happen.
it! I figure I would have saved a
total of around $3200 on closing There is a lot more to using
day with a line of credit, plus these lines of credits. If you
some month-to-month cash with the haven't guessed, I'm pursuing
better interest rate. this realm of funding in a very
aggressive way. Saving $3-5,000
So what's the catch. Here's what per property speeds me toward the
I've found out. (As catches go, day that I self-finance. If I
these aren't too bad.) keep a single project going at
all times, that's 6-8 projects a
(1) You have to be a legitimate year. If I can use lines of
company. If you are not, form a credit for most of these, that's
corporation. Lenders have a savings of $25-$35,000 per
differing requirements for this, year. Heck, that's another income
and I'm not going to go into the in some areas!
varied types of corporations. In
There isn't enough space or time http://www.rehab-real-estate.com/
to go into more detail. (If I get rd10.php
started, I'll be at it for page
upon page.) I'm not going to list So, investigate lines of credit
institutions that offer lines of and save some serious closing
credit. Start with where you bank table, in-your-pocket cash. It
and other banks in your area. It will take some knowledge and
will take some searching, but you determination, but the rewards
will find them. The good news is will be well worth it! I will
that there is a lot more also report my findings as I
information, including lists of learn.
lenders, here:
About the Author:
Bruce W. Ford published the "Nothing Held Back" newsletter as a free service of http://Rehab-Real-Estate.com. Get his important Special Report entitled "12 Things Real Estate Investment Gurus Won't Tell You" at http://www.Rehab-Real-Estate.com.
Source: www.isnare.com
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