Need advice from the money pros !

I need some help here… I build a spec house on a lot I sub-divided off my personal residence and sold it for a handsome profit. Paid off my 1st morgage and my HELOC . I used the HELOC and credit card flipping to build the spec house. I then got a new HELOC , paid off most of the credit card debt and bought a rehab house to flip. I also have another approved lot to pick up for a good deal but don’t have the capital to do this before I sell the rehab. The seller of the lot needs to close as he is moving south. Here’s my problem… All this stuff happened so fast (within a month) my credit report has’nt caught up with the payoffs. My score went from a 725 to a 665 with all the card debt I had and I could’nt get what I wanted on the new HELOC.
Is this a hard money situation or is there a way to get my FICO and credit score changed faster?

Thanks in advance

Your FICO score is a lagging indicator. It reacts to the information that is reported to the credit bureaus by your creditors which typically happens on a monthly basis. You just gotta wait it out.

Does the seller need the cash right now? Maybe you can workout seller financing or something more flexible. They may just want it sold so they don’t have to worry about selling it after they move.

I did work out something that is flexable IMO… The lot is worth 150K-160K in that area and I’m buying it for 125K w/ 75K down and he will hold the other 50K for a year at 8%. I am a modular home builder and can have a house up and and ready to sell in 3 months. The seller won’t wait more then a month to close ( I already asked) or hold more then the 50K. I really don’t wanna miss out on this deal as I stand to make approx 150K on the whole package. Any more suggestions?

Why not just go to a local bank that will give you better terms on the lot deal. Then hold on to the lot until your scores go up and your HELOC terms get to where you need them to be. You should be able to get up to 100% financing on that lot. If you are a builder you should have credit lines working with banks in your local area not building from a HELOC on your primary residence along with credit card flipping. If your market slows down the interest and fees will eat you up much quicker than if you were using a bank line of credit and kept the HELOC and credit cards as a back-up plan for debt maintenance in the event of a slowing of the market.

As I explained in my 1st post, my local bank won’t give me any more credit till my fico shows the payoffs on the dti %. I have just started as a modular home builder in the last year. For the last 25 yrs. I have been a home improvement and renovation contractor. The banks won’t give me a line of credit as a builder till I have a proven track record. I only have a month to do the lot deal and I was just asking if anyone knew a way I could pull off this deal. Would a hard money lender be the way to go? Would they even go in on it?


The hard money lenders that I refer people to in the DFW area do not loan on lots, construction, or raw land. I would look around your local REI club for someone who is willing to private invest or suggest a different avenue for you.

I am aware of a hard money lender that will fund up to 75% for residential lots only (70% for undeveloped land) depending on location.

Credit scores and personal DTI are not a concern assuming that there is sufficient equity in the project.


Scott Miller