Posted by guru on March 31, 1999 at 22:41:47:
Like the old adage, there is another way to ‘skin’ your banks around the old 80% LTV/LTP/LTA, whichever is the lowest.
Contact local contractors & get appraisals for needed repairs on your property. Use your existing [or if needed create a new]property management company - as a sole propietorship - to submit appraisals, on your companies own forms (take original amounts and increase them by 50-100% to cover your fees) to a lender. Any lender will do but I’d go see one you want to do more business with in the near future [This probably means go to a different one than the one with your original note].
Apply for a Title 1 loan to do these repairs. Get your Title 1 loan. Pass the neccessary amount to your sub-contractors who do the actual work.
Pay yourself these fees.
Apply for a new mortgage based on the newly improved property value and rental potential to “consolidate your notes with one institution … to build a long term relationship with one lender”.
Repeat until …