All Forum Posts by: Jason Chambers

Scott Perry you this all this madness?

Eric C. Bank of Hawaii. This is not common with mainland banks but there are a handful that will do it.

We use this strategy on our property in Hawaii. The key to it is understanding the fundamental difference between simple and compound interest. We were able to get a HELOC for 85% of the APPRAISED value of the home. This is drastically different than a HELOC based on a percentage of the equity in the home. Anyway, we took the HELOC and paid off the entire mortgage. Here is a quick rundown of numbers to help illustrate... Appraised value= $725,000 Mortgage payment= $3200 monthly($1700 of each payment lost to interest) HELOC= $600,000 @ 1.75% simple interest paid off the remaining mortgage balance of $533,000 New interest only payment= $770! I charge my tenants $3650 monthly. In real numbers all this equates to a savings of $364,000 in interest payments and the entire line paid off in 5-7 years. We take it a step further where we deposit our entire income into the HELOC. We’re roughly depositing $18,000 monthly. You can just imagine how quickly we’re attacking principle when our interest payment is only $770 and goes down with every payment. Another great feature is as we pay down the line we have access to it again.

Clay M. We’re always in the market for multi-family properties. Preferably 4 units and up. Thanks!

We’ve worked with Sabin Marquez at Marquis Lending (915)920-7223 and also George Van at VRealty (915)496-7661. We have a closer relationship with George but both have been great.

@Abe Macias 75% LTV seems to be the going rate with commercial lenders here in El Paso. Fortunately, you have a couple options to cover the rest. Like you said, you can save enough to cover the 25%. Another option is hard money. You can use that as a bridge loan until you can get the place settled and refinance with your lender once you get the property settled. Initially, it will cost you more in interest (hard money isn't cheap) but it can help bridge the gap to get the property going. We've used this approach with several properties and it has helped us develop some really good relationships with our primary commercial lender (local bank) and several hard money lenders that are eager to fund deals. If you have anymore questions shoot me a message.

Brittany, have you found a contractor yet? My wife and I are dual military at Bliss and also investors. Our contractor might be able to help. Shoot me a message. 

And I used to live in Mililani, mauka side! I miss it there!

Isi Nau welcome to BP! I bought my first home in Ewa. Investing in Oahu real estate was the best investment decision we've ever made! Combined with some of the creative financing available through island banks, Hawaii RE is great! Best of luck to you!

No problem Jacob Firnekas. I've heard several people lament about not having a meeting on the east side. Maybe it's time to start one. There are plenty of RE agencies on that side of town that I bet would be thrilled to sponsor investor meetings. I can't stress enough how much of an impact meetings have on networking and deal making. I found my last deal at epic and hard money at REIA.