All Forum Posts by: Eric Traboulay

Check with Signature Federal Credit Union. I found they have the best HELOCs 1.9% intro rate for 9months and can do up to 100% LTV. This is unheard of in this day and age. If you have the properties paid off, then you are golden.

Hi BP Family,

OK here it goes; My wife and I are in escrow on our first flip in San Diego and the escrow company is asking us to fill out the 593-C form to withhold taxes on the sale of the house. It was my understanding that I only have to pay tax on the capital gain of the house and not the full amount. They aren't taking into account the difference of what expenses I had to flip the house. Do I just get raked over the coals now and pay the $17K in taxes and then get some of it back later when I do my taxes next year?

I'm thinking I want to select the Individual 12.3% x Gain on Sale. Thoughts?
Eric

It's not 100% guaranteed, but yes they have been performing at 7% dividends for the last 2 years and pay out monthly.

@Ciprian L. Actually, that's not a bad idea at all. The mortgage interest rate is only 3.75%. I was concerned with all of the upfront interest expense after looking at the amortization table. The Interest and Principle don't even equal each other until around year 16. It's all front loaded with interest payments. The banks gotta make there money!

I typically tell people to use other people's money before you use your own. It frees your cash up to do other deals with and if the financing is decent, go for it. Also, this allows you to build credit. Having said that, my most recent deal on a flip was 100% cash because it was easier, faster, and cheaper to finalize that dealing with the financing end. Hope this helps.

@Shaun Weekes Thanks, I haven't really looked into a IUL but definitely will. I have a REIT that gives me 7% annually and even more when I reinvest the dividends. I'm just wondering if it would be a better use of funds to pay down the mortgage instead?

Hi Everyone,

I'm looking for some advice (Pros/Cons) whether I should invest my extra income into a savings vehicle that will essentially guarantee me a 7% return annually or if I should put the extra money to paying down the mortgage on my home. I really want to retire early and since the Mortgage is the biggest hit to my monthly income, not to mention the interest expense, I was thinking that should be my first plan of attack. Any ideas or insights which path would be most beneficial?

Thanks in advance.

@Larry Allen Thank you for your post about clearing the cache. That worked for me. I'm now up to date!

I'm out of town this time, but next month for sure! It was great seeing everyone last month. 
Eric

Ben,

Since you purchased the property 2 years ago and can show that you have lived in it during that time, the $110K appreciation is tax free. From what i'm hearing from real estate agents in the San Diego area, things are going to slow down next year and 2020. If I were you, I would sell it and take the gain, then when you get back into town evaluate if you still want to live downtown. It could be overrun by bikes, scooters, and homeless by the time you return! For those of you who live in San Diego, you know what I mean. That's $19,200 over a 2yr period you will have to shell out if you decide to keep it. Throw the money into Rich Uncles or Realty Shares and decide what you want to do when you return. 

Eric