All Forum Posts by: Justin Phillips

@Daniella Lamis My wife and I got a specialized Heloc on our primary, and I loved the program so much that I left my job in Medical sales to join a company that specializes in them! 
It allows us to quickly pay down our principle balance, which saves interest cost, while retaining access to up to 80% of our equity. As soon as a good opportunity comes up, we'll simply write a check out of our line and purchase it in cash. The nice thing, each new property pays off quicker than the last with the additional cash flow. I'd definitely recommend you educating yourself on the program, and seeing if it might be a good fit for you all. There are brokers that offer it in every state. 

@Ryan Dunton Hey Ryan, this is a question that I faced out of HS as well. Not Real estate at that time, but career or college. I had a great job opportunity come up right out of HS, so I jumped on it. I watched my friends go and have the "college experience" while I was working hard and paying bills. 4 years later though, I had a very positive net worth, while they had $10's of thousands of dollar in student loan debt. It was definitely somewhat of a sacrifice, but I don't have any regrets. It reminds me of the Dave Ramsey adage "Live like no one else now, so you can live like no one else later." 
If you feel like you have an exciting opportunity that is legit, I'd say go for it. Worst case, you can start college a year or two later than everyone else. Best case, you're able to build a strong career.   
Feel free to reach out to me directly if you'd like to chat further. 

@Justin Sherrock Definitely raises a good point. It's really up to your goals, and how you want to get there. If you're not looking to get anything paid down to zero, now is a great time to pull cash out and pay a low rate on a 30 year amm. loan. 

My wife and I are paying down our first position Heloc, to save interest, but also to increase our reserves to pull from. When a deal comes up, we'll simply write a check off our line to purchase in cash. The idea is that we'll finance the majority of our deals going forward ourselves. The credit line used does affect DTI, so that's something to keep in mind too. Based on your equity position that may, or may not be a big factor.

@Brenda Maddox It really depends on your goals. If you're looking to get the property paid off, while retaining access to equity, HELOC is the way to go. If you don't want the property paid off, then the cash-out ReFi is the best option.
I recently opened a specialized 1st position Heloc on my property, and I liked it so much that I left my job in Medical sales to work for a company that specializes in them! It allows me to aggressively pay down my principle balance, saving interest cost, but I can access my equity any time. Among other benefits, it features a 30 year draw period, rather than the typical 10 for most Helocs. 

I use Venmo, and it's great. We have a personal account, and a business account that we're able to keep separate. 

@Andrew Casal Welcome to the Biz Andrew! The Realtors I like connecting with are the ones that provide value, or market insights. I always like the "Market Roundups" where they explain how the market is looking with Inventory and Average price etc. 
Also, be sure to be active in interacting with other peoples posts too. That will help build a network, and boost your posts.

@Jed Robbins Where are you located Jed? The BP community always needs good contractors!

@Maria Taylor Are you asking as an Investor? or as an Agent too? 

@Mark Muniz Hey Mark! My wife and I put a first position Heloc on our rental condo, and I liked it so much that I left my job in Medical sales to work for a company that specializes in them! Being in 1st position, you can typically get a higher LTV. Our program is really focused on paying down principle quickly, while retaining access to equity for 30 years. Really the best of both worlds for investors.
In a more typical, 2nd position Heloc, they're typically fairly cheap to open. If you're looking to start with flips, the highest LTV possible will be a bigger help than a lower rate. That's what I'd look for if you're looking to draw for months, not years. You'll still want to make sure you understand the rate, and the draw period. Most HELOCs don't have early payoff penalties, but sometimes banks can get cute with the penalties if it's super cheap to open. They have to make their money somehow. 

@Bradley Snyder Phoenix is incredibly hot right now, and this time I'm not talking about the weather. With all the people leaving states for political/government reasons, many are flocking to AZ with lots of cash after selling in more expensive states. It's driving the market up like crazy. Great if you're a homeowner already, not great if you're looking to get started.