All Forum Posts by: Jeff Goddard

Thanks @Gene Hacker, I just sent the group email out with that announcement.  It should be an informative and fun event!

@Gene Hacker @Brad B. 

Greetings all,

The next meet up is on 10/20/16 at 6 pm.

Location: Rusty's Pizza located on the southwest corner of Ming Ave. and Ashe Road.  

The meet up room is on the South side of the building, not accessed through the main entrance. 

I am looking forward to seeing everyone and having another informative meet up.

@Gene Hacker

@Nick Moriwaki

Thanks for the insight Nick, the low introductory rate for is very attractive. I contacted several lenders today trying to find someone offering a HELOC to replace a fixed rate front end loaded mortgage. I could not find such a first offered. Some were available as a second but only if the first was provided by the same lender..... The interest rates were higher than you indicated are available in Hawaii. I am still trying to understand how if you are paying the existing first, (via the HELOC) you can service the debt on the HELOC and pay it down as well... Thank you

 @Scott Trench 

Regarding a fixed interest rate HELOC, I am told they exist, but don't know if that is true. As to access to the funds for thirty years, all the HELOC loans I have looked at are limited to ten years.

@Chris Soignier

Good points.

Aloha Bob,

Just a thought, I know you are a sharp guy and have examined many interesting proposals, so my thought is this, since you are on the same island why don't you go talk with Santos Kidd.  He has a very engaging personality and does a good job of illustrating his claims.  Were I there I would try to have a chat with him, as I would really like to understand his claims thoroughly, then if it is so much fluff let others know.  I know you are probably really busy watching the sun set into the Pacific, so good on you.  Back in the mid sixties I lived in "the jungle" down by the zoo....  Fun place. 

@Scott Trench@Account Closed@Chris Soignier

Thank you all for taking the time to respond.....

Bob, I will be in touch!

@Armando Banuelos

Thanks.

This is a bit long so.... I am wondering if any of the BP members have heard anything about using a HELOC to replace a fixed or traditional mortgage??

I recently came across a u tube video of a fellow in Hawaii whose name is Santos Kidd.  He apparently has some kind of financial consulting company there.  He is also affiliated with the"Rinatus" organization....  Rinatus appears to be a  RE coaching organization...   There is another guy who is marketing what seems like a similar concept who has a nice video, I can't find his site at the moment....

The essence of the "program" as I understand it is to acquire a HELOC loan to replace an existing conventional fixed rate mortgage. The net effect of such a program is a drastic reduction in the term of the conventional loan due to many thousands of dollars otherwise paid in interest are saved as a result of the rapid pay down of principle. With several assumptions, such as, a positive personal income monthly, a property that is appreciating, and diligent adherence to the program an end result is a paid off mortgage is perhaps seven years vs. thirty years.

It seems that the primary benefit is derived by utilizing the floating or variable "average daily balance" which is used for computing minimum payments with an open ended HELOC product..... This allows one to avoid much of the front loaded interest on a conventional loan. The illustrations are very detailed, but I don't pretend to understand it fully, and the proverbial, "If it seems too good to be true it probably is." comes to mind....

Also considered are lower cost to create a HELOC, lower appraisal, escrow, origination fees, other fees, and no PMI.....

I talked with a friend who has been in the mortgage industry for twenty years and is an accountant as well....  He is highly skeptical....  

I appreciate any sage advice from my fellow BP luminaries.......  Knowledge gratefully accepted.

@Armando Banuelos,

Aramando,

I am wondering how you arrived at the ARV for this property, can you post comps. please,

Thanks,

Jeff

Noel, 

The following is from the Spokane Wa. building ordinance, adopted from the International Residential Code......

 All bedrooms require an egress window or a door directly to the outside from that sleeping room. Unless the City of Spokane has a record (a permit issued specifically for a bedroom) of a basement bedroom, it is not a legal bedroom unless it has an egress window or door opening directly to the outside. The egress window sill cannot be more than 44 inches above the finished floor. The window, in the open position, must have an opening a minimum 20 inches wide and 24 inches high. But then the code throws in a kicker. That opening must be at least 820 square inches. Basically a 4 X 4 sliding window will make this and a single or double hung window must be at least 3 feet wide and 5 feet tall. (Openthewindowandmeasureitjusttobeonthesafesidepriortobuyingthewindow.)

The statement seems contradictory to me, it implies that if a basement bedroom has a permit for same then an egress window is not required, however if there is not a permit then an egress window is required....

Maybe someone can explain the apparent contradiction..... Common sense would dictate all bedrooms are required to have an egress window....

Were I you I would contact the local jurisdiction for clarification...

Good Luck !

Thanks Rick, great explanation.... PETIO brings mind the important questions which must be answered to get a good handle on the value of the property and also possible pitfalls!