All Forum Posts by: Chris DeMello

@Chris Allen is right about appraisals from a bank. HELOC's are great tools to utilize! I use 1st position HELOC's on my homes, and used funds from it for down on other properties. That's one of the advantages of a HELOC. You can use the money from it for a down payment on other RE. Lenders don't allow you to use monies from PLOC's or other loans as a form of downpayment.

They're so much other advantages and strategies with HELOC's. Reach out if you wanna know more. Happy to share.

Aloha,

Chris  

Devin is correct. Just be aware you'll now increase your DTI, so make sure you can still qualify with that new added debt. Another option i'd consider is if it's possible to borrow the money from someone to be paid back right after closing. The security of someone lending you money is that you are able to pay them back 100% with no issues because you have access to your student line of credit. Maybe pay a little interest for borrowing money. Just a thought. Good Luck!

For every $400 worth of debt payments, you lose about $100k of buying power. Check about the USDA loan program in your neighborhood. I bought my first home zero down in Hawaii with USDA loan. 

https://www.njlenders.com/pages/usda-home-loan

Have you considered doing a 1st or 2nd position HELOC instead of refi?

Hey Dr Jordan, I sold my home in Hawaii last year that was on a 1st position HELOC. Same as if it was a mortgage. I didn't use a realtor to sell and just worked with escrow. They paid off my HELOC balance and paid us the rest.

Personally I'd take advantage of the great rates and get a 1st position HELOC instead of a 2nd. It'll increase your cash flow by paying off your remaining mortgage.

Another way to boost your credit is to piggyback off of someone's good CC. Say your parent has good credit with a CC that they use responsibly. They can add you as an authorized user without giving you a card, but still reap the benefits. I do this for our kids to boost their score. 

If you have financial goals and want to achieve it a lot quicker, then consider changing the way we've been conventionally banking for hundreds of years. 101 Financial has a smart banking system that's changing the way we manage and leverage our money to get what we want quicker, and without having to make more money. RE investors and successful businesses leverage their money everyday to scale and grow. Why wouldn’t we do this on our personal side and do the same?? 

101 Financial is a very successful company started in Oahu Hawaii in 2003 by CEO Alan Akina. Thanks to technology we now are able to reach and teach students all over the country thru webinars. I'll put some information below to checkout for yourself. My wife and I do free consultations so you can find out exactly how 101 Financial can personally help you. 

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For me I would decide if I really needed that extra 10% or could you still have enough to invest at 75%. 2% is a big difference and something to weigh the pros & cons if having that extra money is worth it. 

I chose a 1st HELOC at 80% over 90% on mine because the 1/2 percent was more important to me then the extra 10% for my goals with that particular HELOC. My intentions was to increase cash flow in first position with my rental rather then using it for other investments right away.

Are you doing a 1st or 2nd position? 

@Quan Booker If you have someone that can loan you money to maybe for two months to pay off loans. You can then qualify for the HELOC and pay them back, with interest of course!! I did this couple years ago when I needed to bring my HELOC down to qualify for another one. I borrowed $80k from a friends HELOC for 2 months and got my new HELOC and paid them back + $1500 in interest. It was less risk for them because it was sitting in my HELOC, so if I couldn't get my new loan for some reason I could still pull their money right back out. Would be tricky if for some reason you couldn't get the loan and now you can't pay then back. You gotta have a good conversation with your lender and be sure you'd qualify.

Fun debt fact: for every $400 of monthly debt payments you owe, you lose $100k in buying power!! 

Good luck! 

You probably got a card already, but Nerd wallet is great to compare CC! I just use a personal CC. I designate one card just for RE. The card you should get is all depends on what you want.. Miles, cash back ect... Thats where nerd wallet or creditcards.com can help you decide. Interest rates shouldn't matter because you should not be holding balances pass the statement balance due date every month.