All Forum Posts by: Gabriel Cardus

@D Higgs

I use peer to peer lending to build equity. I started with $10k, and spread out the risk to various peers at different interest rates. I borrow from my HELOC at 3.25%, and lend to as high as 25%. Lowest is 9%. The difference is my spread. I then take the payments I receive every month and find myself another peer to lend to. Compounding interest fully amortized in my favor

@Giovanny Vizcarra

Hey I'm sorry I missed this message. It's a credit line, usually no closing costs and basically you open it up as a second mortgage. You use the banks available moneys (calculated portions) to make principle only payments to get ahead of the amortized cycle. To pay that money back, you use the HELOC like a checking account to lower the average balance for the month and apply more towards principle. When you have to pay bills, you transfer from the HELOC back into your checking. The percentage rate your saving daily on the moneys deposited in your HELOC is an instant return on your money because money saved is money earned there.

@Mason Hickman

Price, no more than $550k, approximately 1500 square feet.

@Mason Hickman

Hello, looking for minimum 3br /1.5 bath. Would prefer on a lake or close to town. Looking to put only 5-10% down, willing to do interest only for 5 years with a balloon payment. Creating a win/win scenario for the right seller.

You have available properties for sale?

Hello, I am looking for a vacation home in Falmouth or East Falmouth. Any owner financing deals out there?

@Giovanny Vizcarra

I see your strategy and understand. As far as banks are concerned I always like local banks because they understand your local market and sometimes offer flexible draw periods.

I'm not sure if you are indicating you're aware of the HELOC payment strategy by manipulating the simple interest, but it is basically putting your HELOC on steroids to help you pay it down quicker and build equity faster.

Good luck, you’re where most of us want to be.

@Giovanny Vizcarra

You should take a look at Harj Gil's HELOC strategy. He has a book he authored "How to own your home years sooner without making extra interest payments". It basically teaches you how to use your HELOC like a checking account. It is a very simple read, helps you understand how simple interest works, how to help push your principle down daily to help save you money monthly. Really powerful information once you understand the strategy. Helps you build equity fast leveraging other people's money.

@Johnny Wolff thank you. Can I assume you’re out of Kansas City?

@Jonathan Greene I understand your feelings toward this, I wouldn’t debate it is just what would work for me. I’m not looking for high returns, I would be happy with 6% returns cash in cash because at the end of the day when you add all of the tax incentives, equity pay down, opportunity for appreciation and the idea of hands off using someone else’s resources and paying them to do what they do best, is ideal for me. I would like to leverage other people’s teams and resources and experience to help grow my business as well as theirs even if it cuts into a profit. I just think it works for me.

@Kenneth Garrett I definitely appreciate that info. It’s good to hear from someone who has experience in this field.