All Forum Posts by: Aleks Gifford

Welcome... feel free to ask question, check the podcasts out and remember this site is nearly 10 years old so the search bar will give lots of information on nearly every subject.

This weekend I listed while doing my chores. Travis I have not looked at others yet as these are the very first podcasts I have ever listened to in my life.

Welcome. The best advise I can give at this point is listen to the podcast and read all the resources mentioned in them before you start moving forward. I am a sr. mortgage lender nmls#1157855 and am learning things I did not know.

Welcome to BP. Best advise I can give you is to start in the BP podcasts and as you listen to them read the resources each one mentions.

Legal stuff first: I am a licensed Sr. Loan Originator NMLS# 1157855 and am currently licensed to originate in IN, OH, FL. If you are not in those states what I say may or may not apply to you. Please consult an advisor in your state. That being said when comparing a fixed rate first versus a second you should consider several factors. Is the second a line or loan? Do you need rinse and repeat functions? Is the interest rate fixed or variable? Investing against your primary home is a risky strategy and should be a last resort. When advising my borrowers I suggest they simply refinance unless they can secure an equity loan. You need to work your math on the total cost of the loan including closing costs, rate and APR. You need to consider how long you are keeping the primary home and the home you are buying. If you are flipping it would be a different conversation that if you are buying a rental. Further more it each of those has its own calculations you would need to do.

In short with the information provided it sounds to me like you are asking this question with out having an investment plan and strategy in place, nor have you completed cost analysis of the options and finally you have not sat down with professional advisers who can help you go over the numbers.

Rule number on of investing in anything is due your research after you have worked a plan backwords from your goals. You do this so you do not steer your research to a predetermined conclusion.

Your holding your loan for short term so you would take a long term loan more than likely.

I am currently looking to buy more via tax sale especially vacant land. I have bought some and had good return. I actually doubled my property size on my primary for $700 via a tax sale.

I believe you may have misunderstood me. I am not judging Indy by Riverside. For goodness sakes I am on two of the development boards. I was using Riverside as an example of how out of towner's get taken because they do not do their research of the community.

Legal stuff first: I am a licensed Sr. Loan Originator NMLS# 1157855 and am currently licensed to originate in IN, OH, FL. If you are not in those states what I say may or may not apply to you. Please consult an advisor in your state. That being said the question is not so much term and rate but how long will you hold the property? If you are keeping it just a few years than your costs are much lower on a 30yr however if plan on keeping it for a very long time consider the short term as your cost is lower. Saying it does not matter because the tenant is paying it is bs and why non lenders should not advise on lending matters. You are paying it in cash flow and/or reserves if you loose your tenant and have a period of time with no rent. Your credit is paying it in your DTI. You are paying it in other deals when you are not liquid enough to get in on that homerun. You need to do a Total of Payment Calculation for both terms and rates and compare it to your strategy about holding the property. Further more you need to consider your tax advantages as well as your cash flow and investing needs.

General rule of thumb is short term holdings go long term loans. Long term holdings go short term loans. Reason being is cash flow and speed of return to being able to build equity to refinance down the road.

I have taken to down loading 2 or 3 podcasts at a time to my phone to listen to on my 2.5 hour round trip daily commute. Trying to keep learning especially when I am a captive audience.