All Forum Posts by: Cody Smith

@Joanne Eriaku you are absolutely correct! Almost split right down the middle. I like your advice, put the numbers to paper and see how things really pan out in front of me. I’ll have to sit down tomorrow and write out some scenarios. Thank you.

@Sean McDonnell you read my mind. My option to pay off debt first is my own combination of Dave Ramsey advice mixed with the knowledge of BP. Still gain a solid financial position at the beginning, but move into a much faster and scalable way to gain that million dollar net worth. Thank you.

@Corey Hawkinson thanks for the advice. I definitely see where you are coming from. Almost looking at the loans as an investment themselves (sort of) with the intent to find something that ends up as a more lucrative place to use the capital. There is something that sounds so nice about being consumer debt free however....

@Theresa Harris thank you for the reply, I appreciate an argument for the other side as well. Unfortunately, multi family properties are not in the best class neighborhoods in my current market. With a wife and young daughter, and a military occupation that can keep me away at times, I’ll have to postpone attempting to house hack until we move closer to the Atlanta area where we are originally from. That is the primary plan for when that time comes. Why exactly do you advocate for paying the loans off over time? Would you say to leave the loans, and take extra time to build more capital to have both a solid down payment AND reserves before moving forward?

@John Edwards thank you for the reply. That was my original thought process. Mitigate as many risk factors that I directly control as possible. The question arose after reading a BP article arguing that you shouldn’t use cash from a refinance to pay off student loan debt, but rather pay it over time and use that cash for a property. Made me consider the other side of things.

Hello BP community, quick question for ya. I am a new investor, soaking up all the information I can and building my business plan. I have two paths I can take to begin investing, wondering what you guys think or suggest. A little supporting info, I have ~$20k in accessible capital, and ~$21k in debt, split between a student loan and a car loan.

Option 1: I planned on immediately paying off the $8k in student loan debt, paying off the other $13k over the next 12 months, building our reserves back up once the debt is paid, then begin to invest with less debt and monthly payments.

Option 2: Continue to pay the two loans off over time, since they are low interest rates and maintain credit profiles to help with loans. Take that $20k I have on hand and invest in my first property. This would leave me with an asset, but without the cash reserves I would like to have set aside when I move to purchase my first property.

What are some of the other benefits/downfalls of either of these plans? Thank you guys for the help, this is truly a community of selfless people who help build fortunes and legacies. Stay safe.

-Cody

I know it’s only happened within the last day or two, but the market is HOT! What minimum requirements do you have about purchasing property that you are willing to adjust in today’s market? Or are you sticking to your guns and just digging deeper for deals?

Hello BP community, I’m looking for some tips and advice. I have been interested in using a strategy to purchase a new home and rent out my current home to get started in acquiring SFRs. Today, I stumbled upon a potential off market deal. I found a home that the owner is now incapable of maintaining, and has been moved to assisted living. The home has not been put on the market yet, and won’t be for a week or so. The home is rumored to be listed at around 10k-30k less than the current comparable homes in the area, and all it needs is cosmetic modernization. It is a very desired area, with a rapidly growing commercial presence and rapid appreciation. The advice I am seeking is how to move forward. I don’t have a dedicated RE agent, and haven’t spoken to the listing agent yet. I want to be fair in the offer. I don’t mind offering asking price in order to secure the property, and because it is already including equity in that price. I want to increase my chances of success as much as I can without insulting anyone with a low ball. Do you guys have any advice as to what my next steps should be, and what you would do for the offer? Anything would help. Thank you!

@David Goings As is the case with anything that matters, that first hump is definitely the hardest. I guess that now puts a little more perspective on jumping in and getting past the first deal, getting over the hump.

@Scott Jensen

Patience is the key word there, something I definitely need work on! Thank you for the advice. It truly does help the mindset.