All Forum Posts by: Alfonso Montejano

One of the very first properties i bought,when I was first starting out and young was out of state, back in '07, 3729 S. Benton Kansas City Mo. for 38k, actually dropped in value to about 26k in 13 ys of holding it. i owe 23k ... being so far away , I never was able to have a good Management team who even wanted to take it on, had a few problem tennents , but mostly sat Vacant for most of this time. had a guy who tried to "subject-to" the property and fix it while he lived in it but was an absolute druggie who couldnt afford the $300/mo mortgage.. 

Im getting bids on Rehabbing the property for about 18k but I also want to pay off the $23,000 7.65% interest loan ($300/mo), it gonna cost me almost 40k to Rehab and pay off the loan , for a potential $750-800 rent. 

or it might cost me out of pocket to pay an "investor" to take it off my hands since they`d be looking for a discount. someone who can manage an out of state deal better than I can?  Ive already lost about 25-30k on this deal, fortunately Ive bought other properties near me that ive managed and have done well since then.

any one have ideas or thoughts on this, am i better off paying someone to take it off my hands ? 

Thank you Whitney , very insightful. ill keep this in mind in using my HELOC and when I attempt to refi my properties..

Thank you Rebecca, Im applying for a HELOC on my personal residence, . really impressed how that works the more I look into it.

@Tony Kim I think you`re just looking at the allocation of money strictly from a Return on  "investement" (being a poor investment), where as the point of a Life Insurance/Living Benifits policy. what your Paying for is in case the individual becomes incapacitated/ has an Illness or Dies, there is a large sum of money that the family receives (and would not otherwise have) to help pay for expenses associated with the unfortunate event, and being able to carry on with life with less of a financial burden compounded with the emotional burden . being able to have retirement money liquid is icing on the cake. 

Thank you for letting me know and correcting me , Im really new to it, and that was what in understood. alot of this information is foreign to me and the information comes fast, ill have to look into it more. 

I recently came across an INDEXED  UNIVERSAL LIFE INSURANCE POLICY as far as i understand it, just recently became available to the general public (used to only be available for the already wealthy) that I purchased for myself through a business so its a tax write off.

its Indexd meaning it goes up when the market goes up but stays even when the market goes down, (no losses in value)

sure it might "only make" about 6-7% and you could potentially make more money in another investmet, but along with the Death Benefit there are also Living Benefits, for illness or injury, which is a great hedge in an event someone become incapacitated in any way their family is still taken care of financially. thats the "isnurance" part of it that pays out "incase"

after I think 1-2 years of "loading it" it becomes very Liquid ..you can become your own personal Bank and borrow your investment from yourself, you`ll have to pay it back to yourself, but you again get the interest write off.

at the end of your retirement when you end up taking out your money out as "loan to yourself" instead of a draw so it not Taxed as income , essentially "Tax Free" 

I also understand that banks when lending also count your insurance policys cash value as an asset.which could help with loans from them

I was really impressed with how it was presented and was so far one of the best "off the shelf" retirement investment vehicles (compared to say a Roth IRA) im sure i left a few things out but thats how i understand an indexed universal life insurance policy

you can also "load it" pretty heavily evey year compared something like a Roth Ira which only allows you to load a max of 6k a year?

Great answer, thank you 

I own a couple properties that have appreciated well as well as my own personal residence, Im ready to step up my Investment game, how do I determine Optimum amount of  Equity to "Leave-in" if im ready to Refinance for Cashflow/Maint. ? Emotionally with the current world situation and potential inflation ,I "want" to pull as much as possible 70-80% so can re-invest in more properties  , but also want to be conservative with Rents being able to cover Mortgage and Maintenece costs. Im New to these calculators,just signed up to BP 2 days ago. any insight would be appreciated,thank you