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I just received another RESERVE line of credit from US Bank.

If you live west of the Mississippi this is a great bank to do business with.

They offer reserve lines of credit for your small business checking accounts. This is just like over draft protection for a regular checking account – but the limits can go as high as $50,000.

When you open a free small business checking account at a US Bank  branch office you can wait a month and go back and apply for a $50,000 reserve line of credit on your business checking account. Be sure to fill out the application for the reserve lines of credit with the same template information as any other stated application.

You will just sit in the banker chair and answer their questions verbally – so be prepared with your answers in advance.

Be aware that approval for a reserve lines of credit will require that you provide the social security number of each member of your business with more than a 20% ownership interest. So if one of the members on the articles of incorporation has poor credit, you will want to designate them as only 10% members of the LLC when you apply for a reserve line of credit with US Bank.

I spent the weekend visiting with my mother in MN. She has not retired yet, even though she could if she wanted to.

She say’s that she wants to have something to do and wants to make extra spending money for all the traveling she likes to do.

We talked a lot about her net worth and how long she could live off it if she quit working completely.

In that conversation, I discovered that she had made as much from the appreciation on the one multi unit rental property that she owns and lives in than she had in the mutual fund account she had invested into during her entire working life. She made as much profit from one house as she did from the best managed portfolio she put her life savings into.

I said as we were walking around the lake – “imagine if you had bought 2 houses instead of just one!”

I just took a long drive to the grand canyon over the weekend and I had time to write down some of the tips I find helpful when I’m selling a house without using a listing realtor.

The Outside of Your Home…

• Remove all yard debris, trim dead branches or shrubbery. If there is a tree or large shrub that blocks the view of the home, consider removing it. It has been said that, “if you can’t see it, you can’t sell it”; make sure potential buyers can see your home.
• Keep the grass cut neatly, and the walks and driveways edged.
• Replace any landscaping that is worn, old or overgrown. Installing new landscaping to the front of a house is one of the investments that gives the best return for your money. Remove old shrubs and add new one. Install landscaping edging to define the planting areas from the lawn. Add new wood garden mulch or decorative rocks to all planting areas.
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I am in the process of selling one of my properties to the renter that is living in it. We will be trying to get him qualified at 100% LTV with me contributing enough cash to cover his closing costs if his credit score is high enough.

He will need a 680 score to do a stated income application so he can tell them that he earns enough to cover his monthly PITI without exceeding 50% of his gross income.

If he has high enough provable income (about 48k a year gross) then we can get him a full doc. Loan and his credit score can be much lower for that kind of loan program.

So bottom line is – I will be selling him the house for no money down and I pay his closing costs. My break even sale price is about 90% of the value we hope the house appraises at.

The latest news in the mortgage business is that they are desperate to give out loans now – even with lower credit scores. Because all the ReFi business has died down. So they need customer to come back and they will get more flexible to work with you.