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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Trying to Get Started Posted by Ld on November 28, 2001 at 1:26 AM In Reply to: Trying to Get Started posted by Donna on November 26, 2001 at 5:02 PM : Hi All, : I have been an avid reader of this message board for several months and I have learned a great deal from answers and questions. : Unfortunately, I have a problem. My husband and I have formed an LLC in Michigan to begin acquiring properties prior to foreclosure. We have discussed contracts with lawyers and developed action plans and so forth. We really want to make a living from real estate investing. However, we don't really have the money to get started. I have estimated that it would take close to $65,000 to acquire the first pre-foreclosure property that would likely have a FMV of $90,000. This figure includes repairs, realtor, payment to selller, property taxes and so forth. : The way I see it is that we have one likely option;use the $25,000 worth of equity in our home and finance the remainder using a mortgage company. : We considered getting a small business loan from the SBA but from my understanding our type of business is not eligible for SBA loans. : Can anyone suggest an alternative. We are eager to begin a new career away from corporate America and all of the related bureacracy. Also, borrowing money from friends and family is not an option. Is it possible to get a small business loan from a bank?? : Thanks in advance for any response. *********************** I did not think borrowing money from family was an option either until several series of events led to my father being able to let me use his equity in his home. I did all the leg work and set it all up. All he had to do was sign the documents. He doesn't gain, but he doens't lose either. I have access to his account and code so I can make transactions. I pay all the fees, interest and paid the appraisal on his house. (of course using the equity loan to pay for it, plus I had a coupon) We made an agreement that limited the borrowing up to 75k. It made my dad feel safe and limited our spending. We had an oral agreement that we would re-finance as soon as we could to pay off the equity loan. We did, but it took a year. Then we borrowed it again to buy the next property. We are refinancing this one. It has taken 8 years to building the trust with my dad to actually allow him to do this, but I am going to ask him to borrow it again until I can have my own credit line to borrow against. This is my goal and Dad's want their daughters to reach their goals. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi All, : : I have been an avid reader of this message board for several months and I have learned a great deal from answers and questions. : : Unfortunately, I have a problem. My husband and I have formed an LLC in Michigan to begin acquiring properties prior to foreclosure. We have discussed contracts with lawyers and developed action plans and so forth. We really want to make a living from real estate investing. However, we don't really have the money to get started. I have estimated that it would take close to $65,000 to acquire the first pre-foreclosure property that would likely have a FMV of $90,000. This figure includes repairs, realtor, payment to selller, property taxes and so forth. : : The way I see it is that we have one likely option;use the $25,000 worth of equity in our home and finance the remainder using a mortgage company. : : We considered getting a small business loan from the SBA but from my understanding our type of business is not eligible for SBA loans. : : Can anyone suggest an alternative. We are eager to begin a new career away from corporate America and all of the related bureacracy. Also, borrowing money from friends and family is not an option. Is it possible to get a small business loan from a bank?? : : Thanks in advance for any response. : *********************** : I did not think borrowing money from family was an option either : until several series of events led to my father being able to : let me use his equity in his home. : I did all the leg work and set it all up. All he had to do was : sign the documents. He doesn't gain, but he doens't lose either. : I have access to his account and code so I can make transactions. : I pay all the fees, interest and paid the appraisal on his : house. (of course using the equity loan to pay for it, plus : I had a coupon) We made an agreement that limited : the borrowing up to 75k. It made my dad feel safe and limited : our spending. We had an oral agreement that we would re-finance : as soon as we could to pay off the equity loan. We did, but it : took a year. : Then we borrowed it again to buy the next property. : We are refinancing this one. It has taken 8 years : to building the trust with my dad to actually allow him to do : this, but I am going to ask him to borrow it again until I can : have my own credit line to borrow against. This is my goal and : Dad's want their daughters to reach their goals. 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