I have about 40 rental units, and another great fixer upper deal has popped up that is adjoined to my farm. It is an absolute home run deal, and the fella selling it ran out of money a couple of years ago mid remodel. I stand to make $75k in equity by purchasing and finishing the remodel, not to mention the fact that it would be adding and acre of land with great road frontage to my farm operation. I am a buy and holder, with property management, so I will absolutely kick myself if I don't pull this trigger. My question here today is about best ways to short term raise a little capital.
The issue...One of my other businesses is a multi location restaurant business. Since I am a veteran, I was funded by the RRF, so we will make it past covid quite well, we also recieved two large PPP injections along the way. The PPP and the RRF have no tax implecations, which is great, meaning that things that we paid with them, although forgiven, are still deductions. So, basically, my S corp tax returns for 2020 look horrible, showing a huge loss, that was offset by the PPP loans, but since it's an S corp it carried over to my personal tax return. I literally have millions of $$$ in cash sitting in my business bank acounts to weather the storm, but can't just pay myself a big chunk out of that because it has to be used properly, and my 2020 tax returns and 2021 pay stubs are a wreck because of covid.
So....that being said, here are some options I have come up with, and I would love some input from my fellow credit nerds. I need to pull about $25k from the best place or places possible to finalize this deal next week.
Citi Flex Loans or Convenience check offers - I have two Citi cards with an $18k limit and a $35.5k limit, no balance. Citi Flex loans of $18k and $20k available respecitvely. These both also have great 0% offers with convenience checks, but a 3% fee. Since I have some money coming in over the next 2 months to pay this money back pretty quickly, I am thinking that doing the flex loans are better since I don't pay an up front fee, and I will likely pay them back off quickly before the APR would equal the fee. The downside, this will hit my credit pretty hard on utilization.
I have other cards with varying convenience check offers as well, but all with fees, which I would like to avoid since this is probably only about a 60 to 90 day float, but they are on the table.
Another option, I have an AMEX card with a $20k Limit and zero balance that has a promotional APR of 0% until July 2022 on it now. Does anyone know of a couple of Credit Unions or Fintechs that don't hard pull for membership that let you use a CC for the initial deposit? I could pull a few thousand dollars off here at 0% without a fee in this manner, then transfer the cash.
Finally, personal loans. I wouldn't mind pulling a personal loan from somewhere right now, but because of all the allowed deductions from 2020 my tax returns are crap, and because we have been in waiting mode on the restaurants, I haven't been paying myself via payroll while we wait for Covid to pass, so I would probably need a personal loan with auto approval that didn't ask for POI. I am "Pre-Selected" for up to $30k when I log into my Citi account, and when I play with the loan amount, the interest rate drops lowest if I keep it under $20,700. I have a very long and perfect history with Citi, does anyone know if they have a cut off that they don't ask for POI? I once got a $35k personal loan from Penfed, and it was instant approval, no POI, so I figure other places also do this? I have excellent credit, with an 815 fico, and 4% util.
Same question about Lightstream? I would like to strike up a relationship with them, but I wonder if they skip POI for excellent credit and lower amounts. Even if I could snag $20k from one of these personal loans without POI, it wouldn't wreck my utilization, and as long as it had no prepayment penalties I could pay it back quickly.
Before anyone suggests LendingOne real estate fixer upper loans, while they are great for this type of real estate stuff, they won't do this particular property because it is rural.
I will rack up a bunch of points and cash back on a zero percent offer to do the remodel, then when I get the house completed I will pull a 15 year fixed mortgage against it while rates are low and values are high. This will be no problem from my local CU or Bank that I have many rentals with, just need a quick float with no POI because of Covid.
The final option is to sell stocks or crypto, which I am trying not to do so that I can hold long enough to only pay capital gains, so I would rather not touch any of that. I love doing these deals creatively with "other people's money", and have always done things like this since back in the day when I had nothing.
Recap. Looking for data points on Citi for personal loan POI (or lack thereof), same for Lightstream, and also any credit unions, fintechs, or banks that allow you to fund new accounts with a CC.
Thanks!
