All Forum Posts by: Justin Phillips

@Esther Kim Hi Esther, my wife and I refinanced last year to a first position HELOC program on our rental. I liked the program so much that I left my job in medical sales to join the team. Our program is a little different, in that it's designed to pay down your principle balance rapidly, while retaining access to equity for 30 years. The line of credit is tied to a ZBA (Zero Balance Sweep account), so you do all of your banking inside of your mortgage, each deposit lowers the remaining balance. You still have full access to those funds to pay bills etc. The accelerated payoff is really driven by monthly cashflow, so it's not a great option for everyone.
I'd definitely recommend checking out some different options, and seeing what might be the best fit for your situation. 

@Katharine Wright Scottsdale is a great, highly-desired area in Arizona. If you find a deal where the numbers work, I'd highly recommend it. I spent this last weekend at a cabin in the Torreon community of Show Low, and it was awesome. It has me doing some deep research into prices and availability, The mountains are great in AZ, as it offers fun in the snow in the winter, and an escape from the heat in the summer. 

Hi Philippe! I'm sure this post is no longer relevant for you, but I figured I'd still throw my experience out there for anyone with the same question. My wife and I got a First Position Heloc Loan (AIO), and I liked it so much that I left my job in Medical Sales to join a company that specializes in them!
It's a great option for investors, as it allows you to quickly pay down your principle, while retaining access to equity for 30 years! We're looking to have our investment property paid off in 4 years. Then we'll have the whole credit line available to purchase another property. When a good buying opportunity arises, we'll simply write a check out of our line and purchase in cash. The best part, each new property pays off faster than the last with the additional cash flow. With homes values so high right now, it's a great time to open one, and utilize all that equity.

@Mike Fussell Hey Mike, that really depends on the way it's set-up. I work for a company that offers a first position Heloc. With our product, the initial draw pays off your current mortgage. If you're looking for a more traditional HELOC, then you would pay off your mortgage manually after it's opened.

@Matt Thompson @Megan Brooks
Hi Matt! My wife and I got on the All in One loan, and I liked it so much that I left my job in Medical Sales to join a company that specializes in them!
It's a great option for investors, as it allows you to quickly pay down your principle, while retaining access to equity for 30 years! We're looking to have our investment property paid off in 4 years. Then we'll have the whole credit line available to purchase another property. When a good buying opportunity arises, we'll simply write a check out of our line and purchase in cash. The best part, each new property pays off faster than the last with the additional cash flow. With homes values so high right now, it's a great time to open one, and utilize all that equity.

To answer Chris' concern, if you're a good candidate, it's really not an interest rate sensitive product. Since the payoff timeline is so condensed (5 years in your case), even if the world went nuts and rates shot up, it wouldn't change your payoff by more than a matter of months. With this product, the focus is on interest Cost rather than interest rate.
It's not a good option for everyone though, it's really for those that are wise with their money and have positive monthly cashflow. 

@James Moss @Thomas Enright  
Hi James! My wife and I got on this loan, and I liked it so much that I left my job in Medical Sales to join a company that specializes in them!
It's a great option for investors, as it allows you to quickly pay down your principle, while retaining access to equity for 30 years! My goal going forward is to finance most every deal myself in cash, by writing checks from my credit line. The awesome thing, each new property pays off faster than the last from the additional cashflow. 
To your point, it's not for everybody. In order for the math to work, you'll need positive cashflow every month. That's what creates the snowball effect where your principle balance, and interest cost are both dropping rapidly. That goes hand-in-hand with the variable interest rate. Our average client pays off their home in 5 years, so they don't necessarily care that the rate adjusts. If the numbers work, it's not an interest rate sensitive loan with the condensed payoff. It's really a function of interest cost that we look at with our clients. If you have any further questions, I'd be happy to help. 

@Kevin Romines  You nailed it! It is an awesome loan product, I can't recommend it enough for anyone who qualifies! 
My wife and I got on it, and I liked it so much that I left my job in Medical Sales to join a company that specializes in them!
@Lucia Aronica

@Lucia Aronica If you're a good candidate, the interest rate really doesn't matter. That seems so taboo to say, but our average client pays off in less than 5 years. When the payoff timeline is so condensed, it's not a interest rate sensitive loan. It's really the Interest cost we want to look at. If it's still a need, let me know if you'd like to take a closer look. I can show you the math that drives the savings. 

If qualification is there, I'd definitely look at a 1st position Heloc on your primary(as long as you're not in Texas). You could set that up to 80% LTV on your Primary, for a credit line of $720,000. Then you could roll in your cabin, and get rid of that debt service. So you'd have an outstanding balance of $570,000, and you'd still have $150,000 available on your credit line in case of a rainy day.

Hi Hannah! I actually work for a company that specializes in 1st position Helocs. My wife and I originally refinanced through their loan, and I loved it so much that I left my job in Medical Sales to join their team. On an investment property, it can be set to a max of 70% LTV. There can't be a "$0 initial draw" on the line of credit, so some of the funds would need to be pulled out or directed somewhere at close. If you haven't already found a solution, I'd be happy to answer any questions that you may have.

You would need to bring a strong network in order for it to make sense for you, and the broker. MLO can be a great job, but it's also a grind. It'd be hard to edge out full time MLOs for much business if it was just a side gig for you. Along with that, there are costs involved in both time and money to get and stay licensed.