All Forum Posts by: Jaspreet Singh

I'm writing this in hopes that maybe Tardus leadership adjusts this.... I've been reading about Tardus clients and even the CEO saying that the interest rate you get on your LOC doesn't matter but I believe that it does matter, only when the interest rate gets too high.

I received the password protected videos I was instructed to watch after booking my consultation. Without saying too much, the video uses a 24% interest rate on LOC. That is too high and after "reverse engineering" the calculations. I will not make all my money back that was contributed. I will be short by a couple hundred dollars.

I believe the interest rate needs to be at a reasonable percentage. But 24% utilized in that video example is not good. 

Thank you Georgy, that paints a much clearer picture for me.

Essentially it behooves me to pay off my line of credit as fast as possible because the longer it takes, the more interest I'm paying which in turn eats up my total profit for that single investment.

I did the math based off the following numbers. $10k line of credit at 8% , 10 year payback, $121/month payment. $1k personal cash flow after all bills/expenses paid.

I invest $10k into whatever vehicle Tardus coaches me on. 3 year amortized schedule on let's say Prosper for example at 8%. Prosper will yield me approximately $313/month for 36 months yielding total payout of $11,281. 

It will take me 8 months paying off my original $10k loan of 8% interest, for a total cost of $10,297. I essentially paid $297 in interest. (Assuming I'm making $1,313 monthly payments)

However, my Prosper investment is yielding $1,281 over the course of 36 months(3 years).

$1,281-$297 = $984 profit from my initial investment paid over a course of 36 months, pending no defaults from Prosper.

Do I have it about right?

Consultation scheduled for November, looking forward. 

@Jaspreet Singh

There has been a significant amount of discussion about this topic in the forums for many years now.  I've posted some links below to forum threads with people discussing their experiences that will help answer your questions.  I also think it would be good to ask the other side of the argument of why would someone use this strategy, and positive experiences from investors if you are considering going this route. 

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/44/topics/1058814-first-time-with-new-construction-cape-coral-fl?highlight_post=6055029&page=1

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/forums/92/topics/983659-first-investment-property-with-rent-to-retirement?highlight_post=5677176&page=1#p5677176

https://www.biggerpockets.com/co/RentToRetirement

https://www.biggerpockets.com/forums/92/topics/929410-rent-to-retirement-updates?highlight_post=5508807&page=1#p5508807

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?highlight_post=5222888&page=1#p5222888

https://www.biggerpockets.com/forums/311/topics/915728-experience-with-rent-to-retirement-turnkey?page=1#p5345200

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/67/topics/952977-turnkey-in-indianapolis-through-rtr-case-study

https://www.biggerpockets.com/forums/12/topics/997350-lessons-learned-from-buying-my-first-rental-property?highlight_post=5748036&page=1#p5748036

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

https://www.biggerpockets.com/forums/311/topics/883772-turnkey-investing-renttoretirement-feedback-reviews?highlight_post=5171720&page=1#p5171720

https://www.biggerpockets.com/forums/92/topics/950188-rent-to-retirement?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5535505

https://www.biggerpockets.com/users/ZacharyCole/references