All Forum Posts by: Ivory Hayes

 Hi Mary,

I appreciated your offer and we did end up working together for a short period of time.

May GOD bless you moving forward.

Thanks again.

 Thank you Jeremy. Many moons have past but nonetheless I appreciate your efforts and wanted to give you your flowers.

Thanks again.

 Thank you for this information Steve. I know it has been some time since this post has been put up but it will currently assist me in searching for the right PM company for the AZ property.

Thank you again.

I'm an out of state owner looking to rehab my unit into a long term rental. It currently sits in the rehab stage and I'm thinking I should I be searching for a trustworthy property management company who can handle the rehabbing process for me because of my distance from the unit. I figure I'm going to need management in place after the rehab process anyway, why not have management in place to manage the rehab itself.

I'd love to hear from experience and gain wisdom on how to go about getting my place rehabbed from a distance and set this long term rental up for success.

Thanks in advance.

In search of a trustworthy contractor.

I think Shaun Weeks response was very informative, insightful and great advice.

Me myself, I am pro heloc. It can simply be used as your new checking account to pay off the monthly interest payment and to pay down the prinicipal all at the same time without having to come up with any extra money.

What I mean by that is... With the heloc option you and your wife can take all of the money that you earn every two weeks or every month, however often you both get paid, and put it all in to your heloc account. The first 200 (as the example given) will go towards paying off the interest for that month, then the other monies that you both deposited will be a principal payment. It goes directly towards paying down the principal balance. That money sits there, working for you by paying down that principal and it works for you by lowering the principal, therefore lowering your next month's interest payment simply because you now have a lower principal balance on the heloc. This happens every month might I add. Another thing I enjoy about a heloc is, if you need the money again for any reason at all in life, it's there for you to utilize. With a cash out refi you have to go through all of the paperwork again to apply for another loan and pay closing cost fees all over again and start all over from scratch on your 30 year mortgage getting you nowhere close to ever paying off your house and owning this asset. Well, no closing cost fees for you to pay on a heloc with most financial institutions.

If it's sounding a little weird over the text I'd be happy to break it down for you over a phone call if you'd like. Just reach out to me through a pm and we can chat. I'd like to add value to your situation if I can. That's what bp is all about right...

I hope this made sense.

Happy Investing...

P.S.- I forgot to mention... That the draw period is 10 years in most cases meaning you have 10 years to draw from this account and utilize the money any way you choose and you have that long to pay back the 50k with the terms of interest only before the pay back period hits with interest and principal payments, but you can refi the heloc at any point before that, just as you would a loan. Simply do the heloc process over again and your 10 year draw period is renewed where you can pull from your heloc and utilize the money at your discretion with interest only payments.

But the way that I'll show you to utilize your heloc account you're simply leveraging your paycheck to be the monthly interest and principal payment without having to come up with any extra money. The account should come with checks and a bank card so you can also pay all of your bills directly from this account. The interest accumulated on a heloc is based on the daily balance. So the longer your money sits in there without having to be disturbed, the less interest you pay when the bill is constructed.

Once again I hope this made sense. If not, just pm me.

Happy Investing...

Hey Carlos, I just sent you a pm

Most financial institutions provide this product and it's usually formed as a commercial loan. Simply inquire with a few for this product.

Happy Investing...

Hey Cory,

I'm not 100% sure how the process would go with purchasing as an individual but US Bank offers decent commercial products for for investors to purchase under their businesses. I'm guessing the biggest differences in guildlines would be looking at the borrower to qualify first instead of the property and it's income and putting down a larger down payment, if purchasing as an individual.

Anyway, give them a gander.

Happy Investing...

I agree with most of what has already been said here. I typically try not to stress myself out about the HELOC turning into a loan after 10 years because anytime prior to the 10 year due date you can refinance the HELOC and that basically starts you over on your 10 year draw period. That part isn't a very big problem to deal with. The main part of focus would be to calculate how much you can pay off within that first year at the lower interest rate. That would be the difference maker in my humble opinion. I believe the best way to go about this would be to utilize the HELOC as your new checking account and sit all of your monthly income inside it to reduce principal, which in turn reduces the amount of interest you pay and basically reduces your monthly payment every single month. As long as you're putting in more than you're paying out monthly, it's a great way to quickly pay down or pay off your HELOC and reduce your monthly payment as well. That way, your money is working for you, which stands in line with the reason we invest anyway, right... Have our money work for us and not the other way around. Just make sure your HELOC can offer you checks and or a debit/credit card to pay bills with.

If you need more info, I'll help as much as I possibly can.

Happy Investing...