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Old 09-11-2013, 09:37 AM
 
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Okay, did you go ahead and contact a lender? I am not sure what you want from this board. You have been ultra clear on your lack of debts and what assets you have. Now the next step is talk to a lender. Preferably the bank that holds your trading account as they will see what you are worth. Or the bank that holds the credit card, perhaps they can help you. Or just the bank that you pay your bills from. Whatever, but the advice is go for it.
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Old 09-11-2013, 09:47 AM
 
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Hi Momofthree

No, I did not. I simply came here as I thought there were a lot of mortgage brokers that would give me a preliminary guess of what they thought on based off what I stated.. If I had 3 or 4 pros say "yaeh, no problem" then I would start the task of getting paperwork together. Had I heard "3 or 4 NO FLIPPING WAYS" then I would move on...

I didnt expect the question to go off the rails with why people can't make money trading, or why I should not buy a plane - I just wanted a simple educated guess..... but as always, I do appreciate it.

I suppose at this point I will just call some lenders and pose the question to them. Thanks!
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Old 09-11-2013, 09:54 AM
 
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Aah I got it now. Yeah with mortgages, there are so many nuances and what they can or cannot do. Best to do it locally.
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Old 09-11-2013, 10:03 AM
 
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Yaeh thats just it - I never had a mortgage before. My job is a trader which is never understood. That's why we opened up an LLC years ago so I could get a "real paycheck". That's how I bought my car initially was that they wanted an actual paystub and they would not accept trading statments - so thats how we get around it... I think its ridiculous, but what do I know...

Thanks Mom of 3 !!!
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Old 09-11-2013, 11:19 AM
 
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Sorry. By your post you made it sound like you were in deep debt from your wife leaving you with everything owing. And you didn't have the cash on hand. Sort of made it sound like you were strapped but wanted to buy something anyway no matter the consequences. My misunderstanding. If you can afford it and its not a drain on expenses and can have money allocated for that expense without taking from somewhere else by all means buy as you please.
While I believe in owning everything and not leasing wouldnt leasing make more sense if you can use it as a work expense? I mean why be saddled with owning something that depreciates and in the end you have a old plane. Let it be someone else's problem at the end of the lease give it back and lease a newer model. Do you plan on keeping this plane for a long time or upgrade in 4-5 years . Sounds like you do a lot of air travel which means a lot of hours and a more accelerated maintenance schedule?
Sorry about the misunderstanding. I completely misread your post but as you clarified the situation it made more sense.
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Old 09-11-2013, 12:46 PM
 
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There is a song by the Rolling Stones that includes this relavent line: "you can't always get what you want, but if you try sometimes you just might find you can get what you need"... Now my point in warning you about the pitfalls of messing around with things to try to angle around the fact that you cannot both have money to use for trades and put cash toward a plane was not just to give you your "fair share of abuse", but to help you understand that lenders know that even if someone has a home paid for they need to have BOTH a good income stream AND the kind of credit history that shows the lender need not worry about getting paid back. I understand that $450K house is pretty modest in many parts of the country and the restraint you've shown in being able to pay your credit in full monthly is commenable, but the poor credit score suggest you have not been doing this long enough to make up for past goofy spending...

The folks who specialize in deciphering what sorts of actions result in the best credit score might suggest that you can goose up your credit score more quickly by occaisionally carrying a balance and paying it off early with no late fees or penalities. Might be worth considering...

The other thing you might explore, if you don't get anywhere with a lender allowing you to open a HELOC might be to get your credit card limit raised and/or get other high limit cards so that you can get cash advance to put deposit on plane... Mind you this does not strike me as prudent in the least, and you will almost certainly NOT get a good rate doing this, but if this some once-in-a-lifetime opportunity to get this plane built...

Finally the fact that your salary is coming from an LLC that you control might be a good idea for taxes and a way to keep your home and other personal property "safe" from creditors (and technically a margin account is almost always structureed to hold you fully liable for limitless losses, so you might not even accomplish what you want...) BUT lenders will not be happy to hear what your "salary" really means...
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Old 09-11-2013, 02:31 PM
 
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@Electrician: Yaeh its all good - yes, Actually I can make money or at least break even with the aircraft. That was out of the scope of the original question but since you mentioned it - I can actually lease it back to a local FBO and basically I fly free as they rent it out... or I have a group of 3 or 4 pilots that I could rent to.

@Chet - yaeh my credit used to be 770... not anymore it's unfortunate. Truth be told, for the past few years I wasn't concerned, nor did I care about it, because I never use it. NOw all of a sudden I am considering it and boy is it really haunting me!

But as far as my salary - I have quickbooks payroll and they do a "real" paycheck every week. It deposits directly to my account and I get a normal paycheck. I was planning on saying "I have a job" which is true, and showing my paystubs and tax returns.. I really wasn't planning on disclosing that I own the LLC unless I really have to.

We did the LLC for the sole purpose of having a paycheck, aka -real job. As far as the margin account, yes, I am fully responsible. NO protection around that - you make a mistake - you pay up! Period But I hedge all my trades, so not too concerned, but I understand it.

Chet, are you a mortgage broker? Can we talk on the phone?
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Old 09-11-2013, 05:35 PM
 
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Nope, not a mortage broker, but I have probably half a dozen pals that are. I used to sell real estate and still have friends that do that as well. The stories I hear over a beer these days from them definately are different than when it used to be easy to help folks with less than perfect credit. Of course the excess of that era is nothing to remember too fondly...

The situation you are in is not really all that bad, and it is certainly not uncommon but with the tighter rules that lenders face AND the fact they can do fine just taking apps from folks with better scores there is not much they can gain by helping you...

Honestly, I can predict what they'll say -- work on getting your score up. It might take six months or more but that is about the best option you face. It probably won't be the end of your plane purchase, just delayed for a while.
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Old 09-12-2013, 09:27 AM
 
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@Chet - yaeh I am thinking your right.... guess I am going to have to break down and pay off my ex's debts... it will help my credit I'm sure... As much BS as it is - i may as well get it over with....
Thanks for all the input!
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Old 09-12-2013, 09:45 AM
 
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Quote:
Originally Posted by eminitrader View Post
@Chet - yaeh I am thinking your right.... guess I am going to have to break down and pay off my ex's debts... it will help my credit I'm sure... As much BS as it is - i may as well get it over with....
Thanks for all the input!
After you pay them off, you can also send an explanation to all three reporting agencies to have it on "file" that although you were NOT responsible as per your divorce decree for them, you went ahead and took care of it. It might have bearing with some lenders.
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