All Forum Posts by: Craig Jeppesen

I would be worried about qualifying for the permanent loan due to your low income. I would make sure you have your ducks in a row and the permanent financing lined up before you pursue a brrr especially if you have to use a hml for the purchase and rehab.

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Originally posted by @Brett Mason:

Hey guys! I’m just starting out with RE investing and I just had a few questions.

1. How are people able to become millionaires through owning rentals? I understand how cash flow works but I just can’t understand how $100-$200 through cash flow that people are becoming millionaires. Does the wealth come once you pay off the house?

2. What benefits are there for owning rental properties?

3. Is 15 years or 30 years a better option for paying back your mortgage?

4. And lastly, do you guys prefer normal bank financing or hard money lenders? What’s the benefits of both?

Thank you guys so much for all the help and any advice would be greatly appreciated!!!

Starting a successful business, investing in stock market, live below your means, pay off your house, asset appreciation. Max out 401k and IRA plans, stock options at work; time, being consistent and rate of return are what are important.

Edit: oops, I thought you were asking how to build wealth besides RE.

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Only good debt is for your properties. Stay out of consumer debt.

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Net worth basically means how much cash would I have right now if I sold everything and paid off any debts. Yes you count vehicles, and can include large household items such as art, pianos and jewelry. If getting close to accredited make sure you count anything you can.

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I just checked today. 4.25% for FNMA 25% down 30 year fixed conventional.

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Just tell your tenants that they didn’t qualify and move on.

2 Votes

Originally posted by @Todd Smith:

All I here about is how great HELOC is- How about the downsides: 1) variable rate 2) risk your home if used 3) tax deductible only if used on the same dwelling

First of all not true on your tax statement.

second HELOCs should not be used for long term financing. They are great to use to purchase and repair fixer uppers for flips or brrr investing.

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Try a plumbing supply store. They should carry more sizes than HD. You can always tear it out and put in a tile pan. You can build a base with 4 parts sand to 1 part mortar with some water and put a membrane and another layer of mortar mix. HD usually has great deals on clearance tile.

1 Vote

Originally posted by @Nicole Heasley Beitenman:

I've looked into this dilemma a little bit as we would eventually like to move properties into an LLC. I know that transferring properties into an LLC is a risk, albeit slight, because of the due-on-sale-clause; however, many investors do it anyway. My question to those investors--did you just not tell the bank that you were doing it? If the OP had not called Wells Fargo, could he have transferred the title into an LLC anyways?

That would be called mortgage fraud. Probably not a good idea.

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Cashflow is your short term quick cash or wealth and is great, but the bulk of wealth created in RE is long term via appreciation and loan pay down and eventually step up basis when you die and pass it on. You can also create short term wealth buy buying fixer uppers and doing brrrs or flips.

1 Vote

All Forum Posts by: Craig Jeppesen

Craig Jeppesen has started 1 posts and replied 526 times.

Post: BRRRR Question - Where to borrow from?

Post: How are you able to get rich with rentals?

Post: Pay off debt or invest?!

Post: Calculating your net worth

Post: Interest rates on investment properties

Post: Need help with tenants wanting to choose new tenants

Post: HELOC risk and downside

Post: Shower Pan Questions

Post: Wells Fargo says I can't convert my rental property into an LLC

Post: Buying rental units after age 50 - Bad Idea?