All Forum Posts by: Chris Davidson

@Daniel Alexander you have to run the numbers, and match the time frames. If the fixed HELOC is for a shorter period than a syndication that is not going to work out well. I don't think it is wise to invest debt into syndication deals personally. If you are going to BRRR go for it, and that I'd look at the interest only option since likely would be doing a refi.

Also I'd verify if the fixed rate is a LOC or a Loan.

Best of luck!

@Christopher Eaton the CE shop isn't fancy but worked for continuing ed for me. At the end of the day you just need the paper, the real education happens outside the class.

This is a great example of small steps over and over and good timing! Looking back the DSCR refi's seem like a no brainer but back then some thought it was crazy.

Congrats and keep up the good work!

@Michael Perreira if you have 30 properties and can get the cashflow right and rates go in your favor this can work. Run some numbers out for very conservative estimates and see how it goes. You likely won't even need 30 properties unless there is very little equity in them, or your requiring lots of cash each year. 

If you started this and picked up 1 a year for 15 years I would hope you would have over 100k in equity in your properties, and you could start rolling them from there. While others mentioned you have to have income to qualify if you go DSCR or commercial you won't. The business or properties will have to have the income to sustain the loan and cash out at higher than conventional rates, but with enough equity and rental income this shouldn't be a problem. At the end of the day though if you have managed your portfolio right and have properties for 15 years likely the cashflow will be enough for you to live off of. Also always an option to sell with a carry/ wrap and a balloon.

Cheers!

@Mark S. great post to follow. What was the time frame on initial purchase to refi. I know this was during a huge boom era, but feel like it shows REI work they just take time and require thoughtful action.

Keep up the good work!

@Brian Plajer you can do this. But just because you can do something doesn't mean it is a good idea. Having it as a back up to a back ups back up plan ok. But using debt to cover debt payments is robbing Peter to pay Paul, and you are spending way more on the deal than you realize. Also HELOC are floating so as rates change so do your numbers. This can work for short term maybe during a rehab or something else but you need to have the funds to cover the payment coming from somewhere even if its your w-2.

Going against the grain, I like funding properties with 100% debt, but I don't keep my portfolio at a high LTV as equity and cash are like get out of jail cards. 0% equity properties have little to no room for error and can blow up your investments quicker than anything else with shifts in the market or the numbers just not going as planned.

Best of luck!

like @Steve Vaughan said roll it into your own. You will get to put it where you want it , and can invest how you want. 
Best of luck!

@Robert Atwood Bunch of great advise here. Dive into some basic of personal finance. Without knowing what you are making it is hard to put a saving amount on just expenses. There are a three ways to save more, cut back on expenses, make more money, or sell stuff(kinda make more but limited). Look up some agents in your area and find out what they are about. Getting an investor agent will help you out, however some agents say that but aren't investors themselves. 

Work on making a plan and building a timeline. For an accurate timeline you will need to know savings rate, funds, and what you want to get will cost. The timeline won't be perfect, but it will give you something to look at and refer back to as you are working towards your goals and have hard days and want to throw in the towl.

Best of luck and way to take action!

@Megan Elliott Tons of great advice here, but reach out to your tax professional and see what the hit is going to be once you have a vague idea of the deal structure. Being the bank can be great, but be smart about it. It won't be fun if you have a tax bill that eats away all your payments and you didn't pocket anything year 1.

Best of luck!