All Forum Posts by: Ivory Hayes

Greetings Philippe,

I am not familiar with the all in k e loan but I do currently utilize a heloc for my endeavours. I find it cost effective being that the payments are interest only and secondly it's easy for me to have the money paid back very quickly, a year or less, and am able to utilize that money again for more endeavours. I simply turned my heloc into my new checking account and it's been working out fine over the past year with this method.

I do not promote purchasing any products but in just gathering more information for yourself on the topic of turning your heloc into your checking account and paying back the funds extremely quickly, check out YouTube "the pill method" or "replace your mortgage".

Happy Investing...

You could also look into a personal line of credit or acquire business funding. Either you file for your llc or if you already have one then you could leverage your good to excellent credit and easily receive your 40k. You can achieve this personally through a personal line of credit or through a business. Through a business it comes in the form of credit cards with 0% interest for a year or more and can easily be taken off of the credit cards and converted into cash without having to utilize the costly cash advance option. Sounds like a lot but quite simple once understood thoroughly. You can receive more information from the website 100percentfinanced.com, I believe the website creditsuite.com even speaks about it. Check it out.

Happy Investing...

@Brian Garrett That's a great question and I'm hoping someone will be kind enough to answer it for us. I myself am looking in to gaining financing for an LLC because up until this point I've made all cash purchases but it makes more sense to me to use the cash as leverage and purchase more and bigger properties. So I'm as anxious as you are to receive an answer to the question you've just posed.

Thanks for sharing...

Yes, there are financial institutions that will lend to your LLC that has no track record, through a commercial loan but I believe they basis the qualification analysis off of your personal records which once again would put you back in the same scenario with no w-2 to provide. I hope that I am incorrect about this because that would mean a different scenario for you but I believe this is the case.

On the other hand, you can always look in to personal lines of credit, heloc's or something of that nature to assist you in funding your initial deals. There's also owner financing. That can really help a person in your situation to get started with no or low documentation.

Happy Investing...

That makes total sense in applying the DTI towards the usage of the 50k in each different scenario. So in essence, if a debt does indeed affect your DTI (which it most certainly will) it probably affects your credit in regards to the percentage of usage, of that debt. It's only my assumption but it makes more sense to assume so than not to.

Thanks again for the help @Scott Ellis.

Happy Investing...

I believe there are different Heloc's out there but under normal circumstances paying down any amount on a Heloc, would indeed make funds available for use again.

My question is dealing with Heloc's, and I don't mean to take the focus away from your scenario @Scott Ellis, but I wonder if using a Heloc has the same effect on your DTI and credit score as any other debt product? For example, if the 50k were on a credit card, using a certain percentage of those funds has a negative affect on your DTI and credit score, I believe the same applies toward a personal line of credit as well, but does that also apply to utilizing a Heloc?

For your help, thanks in advance.

Happy Investing...

From my experience being an absentee owner isn't so bad if you have good property management in place, or even building a great relationship with your tenants would work in helping you manage your properties. My two cents would be to think about renting the two houses out, pulling a heloc out of one or both (if you can find a lender who will allow a heloc on an investment property) and buying your next property cash. That way you have no mortgage on the new property. You can then use that heloc account as your new checking account to pay the heloc off in about 5-7 years (give or take depending on your income vs expenses. I'm not saying purchase their management products, unless you want to, but check out the pill method or replace your mortgage on youtube). Use the rents from the rentals plus the income from your job to increase the speed of paying that interest only heloc off. If you can't find a heloc for the investment properties then you can simply do a cash out refi and allow the rents from the investment properties to pay off the new loan(s).

I also think that looking at purchasing a multifamily is a great way to go simply because you're receiving extra rents from that property that you purchase cash which would assist you in paying that heloc or cash out refi loan off even sooner. Just a little food for thought.

Happy Investing...

Absolutely. It's evident that one would stay within the legal limits of their state. In every situation that's absolutely what you do. It's a given. It's also understood that you can either structure the mentioned items within the agreement, or simply raise the rent amount.

I'd like to be clear here that I'm not telling anyone to ever travel outside of their state's legal limits!

Not necessarily. The beauty of this situation directly between the two parties is you can usually make more flexible the terms inside of an agreement. It can be stated that the potential buyer is responsible for these responsibilities as long as they're exercising their option to purchase or the costs for taxes, insurance and any other owner expense can be passed off to the potential buyer through an increase in the monthly rent amount, crediting the the potential buyer a certain amount when it comes time to exercise their option to buy. The beauty is the flexibility of how you as the owner and them as the potential buyer would like to structure the deal.

Everything's negotiable...

I agree with the thought that Darren Eady provided. There will be no need to foreclose on the buyer with a lease option, simply evict them. Which you would have to do anyway if you had to foreclose on them and get them out. In this case you would put together a lease with a option to buy. You can find docs online and do it yourself or have an agent or atty put the paperwork together for you.

Happy Investing..