Quote:
Originally Posted by CDSmith
I'm not saying I wouldn't consider it, but I have to say that one red flag that would go up for me would be why someone who owns all that can't come up with a lousy $20k? I mean really, My house is barely worth half of his yet I can get a "prime+1" low interest line of credit attached to my mortgage for $50k in the blink of an eye from my bank whenever I want it.
Something just doesn't feel right with this picture.
I would want everything put in lawyerspeak, definitely, including me being able to garnishee his rental income if he defaults on the deal, or something like it.
Btw, why does he "take a hit" on his credit score just for pulling the $20k from his card? I don't get it. As long as you pay the card back there should be no "hit" at all, should there? Also, if he is a homeowner, why doesn't he have a low-interest credit card? Mine is at 8% interest, regular interest rate on Visa here is over 19%.
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Good advice as always Smitty.
To the point, I do not know...
I have known him for something like 10 years. Been doing business with him as a partner for around half that. We are more a less business partners (70/30). I do not hang out with, or talk to him, unless business related.
I do not get into all his dealings, nor share all of mine, outside of the business. So I am not sure what all he does, and doesn't have in regards to equity credit lines, and such other than what he has disclosed.
I DO know he has properties because myself, and models, have lived in them and I know the maintenance dudes. I also know the bank manager (before moving almost all my business to a credit union), and mortgage broker he/I use. So it's not that it can't be verified.