Loan Approved!

I got some good news from the bank today. They say that they will fund my latest purchase of 10 rental units in 4 buildings. This includes 2 single family houses, a duplex, and a 6 unit apartment building. This is the first loan I have done since all the sub-prime fiasco; credit crunch, etc. No problem!

In addition to talking to the bank, I also had to do a little credit repair work on my own credit score. When I was talking to my bank about the loan, they told me that my credit score had dropped a BUNCH because the other local bank I use had turned in several late payments to the credit bureau. Since I've never made a late payment on anything, I knew immediately what the problem was. Here's the story: I use two small local banks for all my real estate purchases. At one of the banks, I have a line of credit. Commercial lines of credit usually run for a year and then must be renewed. Normally, this renewal only takes a signature and it's done. However, the paperwork apparently wasn't right on my line of credit and the bank needed to redo it from square one. For whatever reason, this took them 3 or 4 months. During this 3 or 4 month period, the line of credit was technically in default because it had become due and payable when it expired. I received a statement during each of those months saying that I owed the entire amount plus a late fee. When I received the first one, I called the bank President and told him about the statements I was receiving. He told me to continue to make the payment and disregard the notices, which I did. Well, apparently, someone at the bank didn't get the memo and turned the loan into the credit bureau. UGH! So, today, I called the President of the bank again and he asked me to bring a copy of my credit report to the bank. I subscribe to FreeCreditReport.com and so I printed a copy off of that and took it to the bank. He explained that he wanted the credit report because the bank needed to determine where they screwed up and that they would remove the items from my credit report.

After this, I did a little more Christmas shopping and then finally went into town to work on my 2 bedroom house. Today, I replaced 2 broken windows with plexiglass (thanks to vandals); replaced several missing lightbulbs (stolen by the tenant); replaced a broken toilet seat; and checked on the bat that I assisted yesterday. I expected to find the bat dead, but he was gone! Maybe he survived after all.

Finally, I showed a rental to a potential tenant. That was about it! I'm going to work a few hours tomorrow and then take Friday off to go snowboarding.