All Forum Posts by: Levi K.

Monthly CASHFLOW 101 meetup - Play, Learn, and Network!!!

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Double Digit - The Encompassing Monthly Meetup for Real Estate Enthusiasts.

Location: KW Carmel Valley Office: 12750 High Bluff Dr, Suite 300, San Diego, CA

@Kiara Conde Dear Kiara, please allow me to ask you some questions rather than answering your questions.

First of all great job on saving the money. Second of all itis amazing that you are thinking about taking care of your future (I woke up at age 34 :) ). Any-who here are questions for you:

1) what are your short/long term goals?

2) what are your skills level than it comes to rei?

3) are you looking for cashflow and/or appreciation?

4) do you want to invest locally or not.

5) what level of education do you have in regards to rei?

6) do you have a mentor?

7) do you know someone who already accomplished what you are trying to accomplish? If so see if you can connect with him/her.

Hopefully by answering my questions you get some clarity on what you might do with 25K.

Please remember that no one cares about your money as you do.

Happy to connect with you if you need more guidance.

Regards,

Levi - A W2 investor in pursue of cashflow 💵

P.S: some ideas what can be done with 25K - use as downpayment for an investment property; start a short term business; become a passive investor in someone else's deal...

@Niña Phelps Hello Niña, you are way ahead of so many people.

Here are my advices:

1. Understand and be Crystal 🔮 clear what are you goals. Easy said than done, lol. There are soo many avenues you can take in REI. I did not know exactly what I wanted until I started doing.

2. Education - learn enough about a lot to ask smart questions. I call this Horizontal learning. Later you can dive in and learn as much as you want.

3. NETWORKING - the more people you know the easier it will be.

4. Leverage - people's skills, knowledge, time, and relationships.

5. Get a mentor- could be a virtual or in person.

6. Take bold actions.

Happy to connect with you if you have any further questions.

Thanks,

Levi

@David Cam I love your question because it shows that you're thinking about exit strategy. Let me tell you what I am doing.

The interest only HELOC that I got has:

A) 10 years draw period (after that I can't draw anymore and need to start paying back)

B) 20 years repayment period.

Hopefully after 10 years I can refinance the property and pay the HELOC. Also, I am utilizing portion of my cashflow from other properties to pay some principal back.

Hope this make sense.

Regards,

Levi

@Bernadeau C. Hi Bernadeau 👋, great questions. Let me answer the following way:

1. With interest +principal HELOC, I had way less cashflow. However, since I was paying principal I could utilized it over again.

2. With interest only HELOC, I had more cashflow. Currently, my strategy is to collect some amount and apply towards the principal. (Just because it is interest only HELOC, it doesn't mean I can't pay principal).

Most important thing is to make sure regardless of which HELOC you are going to use, your investment property can support it.

3. I used local credit union banks in my state. Since I didn't have checking/saving account with either one of them, I have been asked ro open and maintain one.

To open an account and get approved for HELOC was straightforward and didn't cost a dime.

Happy to connect with you if you have further questions.

Regards,

Levi

@David Cam Hello David, I have used HELOC 2 times so far ro purchase investment properties.

When you use HELOC as a downpayment and the rest you get mortgage - your have non of your money 💰 in the deal, which means INFINITE returns 😉.

There many reasons why I chose HELOC and not a home equity loan:

1. it behaves like revolving credit card. Say that you used HELOC and paid some of it back, you can reuse it again (as long as you are with draw period)

2. You pay interest on the amount that you used. Say you got HELOC amount of 100K. If you utilized only 25K for the downpayment, your interest payment will be on the amount spent aka 25K.

I have used both interest only HELOC and interest plus principal HELOC. Of course with interest only you will have "more" money left each month. But remember that the interest is being calculated on the amount owned. Thus if you don't pay balance the interest stays the same (almost).

Also, please remember 🙏 that the investment property should be able to pay for itself and plus some money left in your pocket.

Since return on equity is ZERO (check out Get Rich Education podcasts 163), utilizing HELOC is great strategy.

Don't hesitate to contact me if you have any further questions.

Thanks,

Levi

@Jordan Lefkowitz Good day, Jordan!

I am also "buy and hold" real estate investor.

From my experience I would say the following:

1. Figure out what are your criterias - 3b/2b with 2 car garage, near good school district, new construction or turnkey property, cash on cash return, buying for cashflow or appreciation...

2. Buy/invest in tenant Friendly states!!!

3. The area that you choose can be a perfect fit, however, if you don’t have a team it can be a nightmare.

4. See if you can find someone that already invested in the area that you might be interested to invest and get referrals from them.

There are many, many providers/options out there. You just need to be crystal 🔮 clear on what is that you want. (Might take some time).

What works for someone, not necessarily will work for you.

Hope it makes sense.

Please don't hesitate to reach out to me if you want to bounce ideas 😉.

Happy to chat.

Levi

@Yuri Woitscheck Hello Yuri,

My experience and thoughts are below:

I didn't take any expensive courses.

I did read some books and listen to many podcasts.

That being said, I did spend a lot on time searching for info that I thought I needed.

Also, the info DID NOT always cover the situation/question I had.

To "collapse" time and save a lot of money I would recommend the following:

1) try to attend any RE meetups in your local area and get connected with like mind investors. You will be blown away by the their eagerness to help/educate/share.

2) sometimes local association of realtors offers very affordable classes (I took 3 sessions with SDAR at very very affordable price. I did pay a little bit more since I was not SDAR member, but the value I got and connections I made were priceless)

3) check out Udemy for FREE REI classes as well.

At the end of the day, nothing beats the hands on experience 😃.

I love coaching my friends and colleagues about real estate investing. With in 1 hour they have a wealth of knowledge that took me 5 years of experience.

Hope it helps.

Regards,

Levi

@Jeremy Luster Hello Jeremy, I used HELOC (twice) and 401K money as well (took a loan against my 401K in order not to pay any taxes or early withdrawal fees).

If you use HELOC as downpayment and get a mortgage for the remaining value- it means you didn't use any of your money - which means INFINITE returns 😉. Congrats!

Of course you will need to pay HELOC and mortgage back. Please make sure that your investment property can support both of the payments.

I am not sure how much you know about HELOC, but here is my experience:

There are 2 types of HELOC loans that I took:

A) interest only HELOC

B) interest and principal HELOC

With interest only I have more money left for me at the end of the month. The rate is adjustable. (I had 1 year promotional rate of 2.99%). I can withdraw money up to 10 years and afterward I need to pay it back within 20 years. I use HELOC as revolving credit card 💳 - I use it, I pay it back, and use it again.

At this stage if you have HELOC, I would use it and maybe later 401K loan. The reason is that return on equity is ZERO. So why not to take the equity and put it to work.

Hope it helps.

Regards,

Levi

@Mason Adelman

Sure, here is the link to BP list: https://www.biggerpockets.com/books

And here is the link to my list: https://www.passiveincomeboost.com/15-best-books-to-achieve-financial-independence/

Hope it helps.