Help: Trying To Work Out A Financial Base..any Input?

My plan is to start out rehabbing a dump in thw wholesale neighborhood of 10-30k...I have been trying to get my resources in line...and here is my current situation. (email trail with banker...in reverse order...see the bankers miscommunication at the beginning)


Ruben…



Doing some figuring here….



If I borrow all of the 15k out of the line of credit…the payment is 15k x .015/mo = $225

Then I cash the check for the loan for 10k………the payment is $325.21

for a total of $550.21/mo.

Let me know if I got the numbers right….



Next question…I won’t be needing the money until I make a successful bid on a piece of property….how long is the 10k loan offer good?



Thanks for all you good work



Chuck



-----Original Message-----
From: **Please See My Profile** [mailto:RubenL@wellsfargo.com]
Sent: Wednesday, February 04, 2004 1:27 PM
To: Jacobson, Charles L
Subject: RE: Approval for LOC



Chuck,

I spoke to the underwriter and he explained to me that only one line of credit can be given at one time. So, what I did was re-submit an application for 10,000 unsecured loan for 36 months. It originally came back denied due to outstanding debits, but I explained your relationship with Wells Fargo and the underwriter did reconsider your application. So, you have been approved for a 10K loan with a discount rate of 10.75% for 36 months with payments of 325.21. Is this something you would like to do? If so, you can pick up the check today. Sorry about the confusion about the 10K Line of Credit.



Ruben (xxx) xxx-8860



-----Original Message-----
From: Jacobson, Charles L [mailto:charles.l.jacobson@.com]
Sent: Wednesday, February 04, 2004 9:52 AM
To: 'RubenL@wellsfargo.com'
Subject: RE: Approval for LOC



Ruben..



It looks like they just increased my current line from 11k to 15k....It doesn't appear to be a separate line for an additional 15k...would you check it out and let me know what you find out?

-----Original Message-----
From: **Please See My Profile** [mailto:RubenL@wellsfargo.com]
Sent: Tuesday, February 03, 2004 5:15 PM
To: Jacobson, Charles L
Subject: Approval for LOC

Hello Charles,

It has been great talking to you on the phone. I just wanted to go over with you the Line Of Credit you got for 15K. It has been booked and ready for disbursement by Friday of this week. You should be receiving a letter with disclosures and checks if you want to use them. You rate was at 8% for 15K which is great considering you have one for 11K at 9%.

If you have any questions, please come by and see me or call me. I wish you well in your home purchase business.

Best of Luck,

Ruben Lee Salazar

Pesonal Banker
............
It looks a bit scary with the monthly payments for holding, not to mention deposits for electricity, gas and water. Plus, it looks like a HML for the rehab money. On HMLs, will they normally loan an amount with for a per-set fee per month and wait for the principle until I cash out?