All Forum Posts by: Justin Phillips

Maybe send your guests your work-out routine, or offer to train them? If training them, you'd want to charge a fee of course. 

Buy your property, then make the switch. Underwriters are always looking for stability. Moving from selling cars to houses is a big change. Just about every Real Estate agent is self-employed, which would definitely restart that 2-year clock. 

I use Doctor of Credit for all my credit/travel hacking needs. There aren't any paid ads/promotions, just the facts without being sold anything. Just the facts! 
The Points Guy and Nerd Wallet get paid for their recommendations. 

Best Credit Cards For Travel Purchases - Doctor Of Credit

My wife and I were facing a similar sell/keep as a rental dilemma and we decided that keeping the property as a rental while retaining access to equity was the best of both worlds. We refi'd into a very specialized 1st position LOC that's tied to a zero balance sweep checking account. So we retain 30 year access to our equity, but only pay for it when we need it. In addition, we sit all deposits/idle funds on our balance where they save us a nice bit of interest. It's been a great move for us as we've enjoyed the monthly cashflow, appreciation over the last year and have also put some equity to work when opportunities arose.
Having equity is a great spot to be in, best of luck with your next steps!

 Not sure who told you that, but that is not the case. A Heloc is essentially a super sized credit card with a great rate. Opening a credit card before a home purchase won't hurt unless your credit is right on the line, same for Heloc. 

Often the inverse of your question is true, many lenders require 6-months of title seasoning before giving cash-out/Heloc. Maybe that's where the confusion is coming from? 

It's always much cheaper to finance projects yourself. Hard Money is typically more of a "last resort" when all traditional financing means have been exhausted. With a LOC you can also recycle those funds for multiple projects.
My wife and I have a very specialized 1st position LOC that allows us to sit all idle funds on our balance and gives us 24/7 access to equity. Our goal is to use the 30 year term to build additional wealth with our previously "trapped" equity. 

 Typically variable rate, there is an option to fix the rate for 3 or 5 years. We don't really recommend fixing it though, as it's just an added cost at closing and doesn't change the outcome. Minimum mid score of 700. We can put one of these one each property type per borrower; Primary, Investment, Vacation. 

@Bryce Matson 1st position LOC/HELOC is much different than a traditional Heloc. One of the big reasons is being designed from the ground up to sit in 1st position, it has the staying power more similar to that of a traditional mortgage.
Zero Balance Sweep account (ZBA) is a checking account that sweeps all activity over to your outstanding balance on the credit line every night at Midnight. So effectively it allows you to do all your banking inside of your mortgage, so your deposits and reserves are working for you, not a bank. It really maximizes flexibility. 

My wife and I got it on our property, and I liked it so much that I left my job in medical sales to join the company we got ours through. 

Generally anytime you can minimize trapped or lazy equity, it's a win. 
My wife and I wanted access to our equity, but didn't have any immediate use for it, so we ReFi'd into a very specialized 1st position LOC. It's tied to a zero balance sweep checking account, so all regular deposits/idle funds sit on our balance and save us interest cost. When an investment opportunity arises, we simply write a check from our line and put that equity to work. It's a tougher loan to qualify for, but a great mix of cashflow increase and long-term flexibility for those who it works for!

Being that you're buying from a family member, who I assume owns it outright, have you considered owner financing? That might be a great way to get into the property and retain ample flexibility. That's the first avenue I'd explore. Sounds like a fun property, a young kid's dream!