Jeff,
what is your take on “getting business line of credit” ?
do u advise on buying apt complex built in 1961 ?
Hi Love to know,
Biz lines of credit is ok. We do them all the time. It has it’s place but is not a panacea for all cash flow ills 
As far as bldg build in 1961. It all depends upon renovations, upgrades, plumbing etc.
If it is a really good deal and you get a relatively recent engineers report on it and plumbing, lead (paint especially), and structure is up to new code sandards then it could be a good deal.
25 years is not that old in terms of brick and mortar but is a lot more significant in wood.
The most important thing is whether it is up to current code and condition of plumbing, heating plant and paint. In 1961 they still used lead paint.
Good luck
Jeff
Jeff,
Thanks for the tips ;D…what is the usual interest rate for biz credit line ? i hope it’s not as high as credit card rate…my golly…
i believed u are enjoying the green grass, do you mind if I ask you to share a brief success story ? which books do you read and how did you get this far ? basically i want your biography
I am glad that you all got a good laugh at my expense, I did not mean to sound ignorant, just curious. I am sure that there is a way to buy commercial property without using my own money, but I am just not sure how yet. Commercial real estate is, as jeff puts it…“it is not scary and the deals are often much cleaner than in residential.” I will find the way and then I will let all of you know. I have purchased up to 6 units without my own money…and did this while in college, so I know it can be done on a small scale. I am interested in the 100% loan that Jeff speaks about…and hope that he got my email today. I wonder why you cannot use the line of credit to pay for all closing costs and appraisals if you are able to get us $150k line of credit. Also, you guys had so much fun with my finance question, you forgot to answer where I would find foreclosed apartment buildings…this is a whole new animal for me and my partners and we are interested in finding out how to get moving. Thanks for all the helpful information.
Hi Kriskrench1,
Who says you can’t use a ULOC for closing costs?
As long as you qualify for the ULOC you certainly can use it for down payments, closing costs, settlement feesappraisals, or anything else you want.
We do it all the time.
Jeff
Hi Jeff,
Before you mentioned that I would need some out of pocket money…I thought about it and was curious if we got the line of credit why it could not be used. I guess I was typing in stream of consciousness…Did you get my email the other day asking what you thought of our ability to qualify for your loan. We are also thinking about getting lines in our personal names to start the process off…
Thanks Jeff and let me know what you think when you get a chance.
Hi Scott,
I’m not usre If I got your email.
Try again. I generally answer all emails with 15 to 20 minutes of their arrival.
As for personal lines of credit… That is a possiblity. Cross collateralization of your personal residence is another way that doesn’t require you to cash in your equity and take a higher interest rate than you currently have on your home.
There are a couple of other possibilities but these are the best.
Jeff
thank your very much jeff. I am astounded to see how much one man can know about an industry compared to another man. Thanks very much for your patience. I look forward to our continued emails
My pleasure Scott.
That’s what life is all about. People helping people.
It’s all about THE Great Commission… Not “A” great commission… if ya know what I mean.
Jeff
wonder what’s the rate for business credit line…
Actually, that’s a good question.
There is no known method of anyone other than the funder to figure out how to determine that.
The only way to find out is to apply.
Business lines of credit are prohibited from charging an up front fee of any kind.
Jeff
Getting back to the topic of Scott Scheel…
I saw that same pitch that everyone is talking about. I even met him in person and talked to him for a while. His course is pretty good but not worth $5K. Do like I did…buy it on ebay for $300.
If you are serious about buying a commercial property, find a commercial real estate broker in your area and take them to lunch. They can answer all your questions and it won’t cost you a ton of $$$.
Commercial RE is different than residential in a lot of ways, but don’t get so caught up in the “creative strategies” that the gurus preach that you miss the fundamentals of the deal.