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    19 Replies Latest reply on Apr 21, 2008 11:13 AM by brinat0318

    Difficulty Obtaining Loan

    jbafi11 Newbie

       

      I am trying to obtain a loan for some real estate investing that I will be doing with a partner. I have very good credit (over a 700); however, I can't seem to get credit from anyone because of the length of my accounts. I'm young (early 20's) and most lenders tell me I need to build more credit. It's extremely discouraging to see people out there getting offers who have low scores with a history of late payments. Any suggestions on how I can succeed in this kind of a situation? I'm certainly not willing to play the "waiting" game anymore :)
        • Re: Difficulty Obtaining Loan
          Dereshki Adventurer
          Hi
          If you want a business loan, you can try with BofA. Do you have a Corp or it's personal credit? If you have a C or S corp it could be easer to obtain loan.
            • Re: Difficulty Obtaining Loan
              StevieD Newbie
              Dereshki,
              I fully understand your frustration in trying to obtain a so called "Business Loan"

              Our Company is a documented (2) years old / An (S) Corporation with an (80) Paydex Business Credit Rating with (Dun & Bradstreet), that has (7) established vendor accounts & reporting as (100%) "Paid as agreed" / Business Credit line of (10K) to (12K) with (BOAC) for over a year now, along with (5) other combination BOAC checking & savings accounts and we "STILL" cannot obtain a loan anywhere? Our company is also a present participant with the local SCORE agency for Anderson, SC & we also have (2) years of Corporate Tax returns under our belt?

              Frustrated??? You betcha...

               


            • Re: Difficulty Obtaining Loan
              ccurtin Newbie

              You have not given us enough information, but my guess is the problems are experience and/or cash flow. Read and understand the five "C's" of credit. Are your trying to do an SBA backed loan through the bank? What % are you putting down?

              Good luck.
              • Re: Difficulty Obtaining Loan
                LUCKIEST Guide
                11, Welcome to this web site. Difficulty Obtaining Loan
                Suggestion on how to succed in business??
                Do you know about SCORE??. SCORE is FREE.
                LUCKIEST
                  • Re: Difficulty Obtaining Loan
                    SJCarpentry Wayfarer
                    Since I have bought a few rental properties, let me tell you what's worked for us.

                    Sometimes it helps to be creative

                    1. in the way you approach the lender. First of all, are you going to a bank where both of you either have or could move a bunch of your personal accounts. Typically the banker can pressure the loan officer if he sees multiple sales on the horizon

                    2. Are you doing this on a secured or unsecured basis? Do you have a tenant with a good lease or not?

                    3. Have you considered a bridge loan initially secured by some personal assets?
                    • Re: Difficulty Obtaining Loan
                      Matthew Wayfarer
                      Yes but luckiest, doesnt SCORE just deal mainly with the SBA for funding or do they go through other channels?
                    • Re: Difficulty Obtaining Loan
                      jbafi11 Newbie
                      It's hard to obtain anything secure because I do not own property yet. I've established an LLC, but there is only so much I can do right now until I can find a lender who will enable me to get out there and find good deals. I have already found a few that I would love to get my hands on. I'm hoping I dont have to wait around...I've been trying to establish credit for a few years now, but since I'm young, it seems to be a never-ending waiting game.
                      • Re: Difficulty Obtaining Loan
                        K4Lic0 Newbie
                        How much are you trying to get? Could that be the problem?
                        • Re: Difficulty Obtaining Loan
                          jbafi11 Newbie

                          $50k+, but I can't even get approved for $30k.
                            • Re: Difficulty Obtaining Loan
                              Dereshki Adventurer
                              The lender looking if your LLC is serious Corp or not. You must show them that. You must have for exemple a land line phone number. Registred in 411.com website. Many thing like this. If you lookup on http://www.dnb.com/us/ you can see if you are registred there. Your LLC must be compliant. It had a loat of thing befor some body give you money. Remember if you are the lender, you will give the money to a corp who had nothing serious or not a solid foundation.
                            • Re: Difficulty Obtaining Loan
                              BarryMBroker Newbie

                              Qualifying for a real estate loan especially as an investment is not only a function of your credit score. There are a lot of other factors that come into play. There are variety of underwriting guidelines. I am a broker in California and can fill you in with what general preparation steps you should take given that you let me know what kind of projects you are looking at.
                                • Re: Difficulty Obtaining Loan
                                  jbafi11 Newbie
                                  That would be great. I would really appreciate that. I would like to invest in single family homes-- to start. I am in Orlando and there is an overwhelming amount of opportunity here right now. I can scoop up some amazing deals.
                                    • Re: Difficulty Obtaining Loan
                                      BarryMBroker Newbie
                                      From all your posts, I gather that you want to jump on the bandwagon prematurely. For investment purposes, even seasoned investors need to have a good amount of downpayment and solid credit and income history. The kind of deals you are talking about, are not only in Florida. They are available in all the other states. However, the credit market is tight and not everybody can qualify for a mortgage loan. Most important on the list is employment/income histroy which requires a good 2 years of stability. And if you have that, you need to consider buying your own first real estate property. And if you don't, you really need to work on it. There is no magic formula. Your interest in real estate investing is admirable but you just may be ahead of yourself. You may like to partner with others who may be considered more qualified borrowers and start from there and also consult with the local real estate brokers. Good luck.
                                  • Re: Difficulty Obtaining Loan
                                    M1S96F1 Newbie
                                    I am a little confused in regards to your post. Are there properties which you have already gone into contract with or at the very least some type of option or binder. No lender is going to give you a loan to go out and look for deals. The only possible product is something called a wharehouse line of credit or something similar called a blanket mortgage. However, in both cases you have to put some of your own money into the line. Also, they are only used for income producing properties. If there is a property that you have in mind, you may be able to get what is typically called a "hard money loan". However, these loans typically carry higher interest rates, higher points and lower LTV's than your typical bank loan. However, considering your limited credit history, you may have no choice. Remember, these type of loans are short term and then are typically refinanced. At that point, your credit history may be better and you will be able to apply at a standard bank. I hope this information helps.
                                    • Re: Difficulty Obtaining Loan
                                      tatiana83003 Wayfarer

                                      It is probably hard for you to get this loan because it is investment property and I am assuming that you currently do not have a primary residence of your own. If you don't, try going to a financial institution that offers stated income or "paper saver" and do the loan as a primary residence. You can do this without have an extended credit histoy as long as your score is over 700 and the property is no more that 4 units.
                                      • Re: Difficulty Obtaining Loan
                                        brinat0318 Newbie
                                        jbafi11,

                                        Are you still in need of a loan? My company can assist you with the process. Since you have a credit score above 700, we can usually get you the funding you need via a business line of credit within 1 - 3 weeks.

                                        If you are still interested, please contact me at natba18@earthlink.net