All Forum Posts by: Justin Phillips

Wow, talk about wild west! Kanye must live on the other side of Cody. 

Hi Daniela, 
There isn't quite enough information here to really give you great advice. $225k could be a great entry point, or a terrible one depending on many factors. The market is high right now, so I definitely wouldn't recommend swinging for the fences. However there are still areas where it's much cheaper to buy than rent. 
If you waited, could you potentially buy a small multifamily and househack? Do you have reserves? 
Based off what I'm reading, it may be in your best interest to continue to save and look to use your FHA loan on a duplex.
Give us more info on your purchase and rental market, and the fellow members will weigh in and give you their thoughts! 

Early to Middle will be your best bet. End of Month can get crazy with certain rate-locks expiring, and other EOM type business tasks. 

I have a very specialized 1st position Heloc on my rental in SoCal, I always recommend it to anyone who qualifies. 
The Line of credit is tied to a zero balance sweep checking account, so every regular checking deposit is swept towards your outstanding balance, saving interest cost. Along with that, it's designed from ground up to sit in first position, so it carries the staying power more similar to that of a conventional mortgage. So when 2nd position Heloc (or 2nd lien helocs sitting in first position) are pulled or frozen, this one won't be. Definitely a great time to lock-in access to equity! Best of luck. 

Truth be told, I never want my balance to hit zero, because then all my idle deposits and balances are no longer working for me. I'm going to continue to recycle that equity to grow my portfolio. Plus with positive cashflow, my cashflow actually increases every single month, as my balance is brought down and my cost gets cheaper. 

@Elizabeth Rose The "Catch" is that the interest rate adjusts. For investors, that's nothing new for a line of credit, and the rate is actually lower that a typical LOC, 3.84% currently. When you're paying off so quickly, it's less about interest rate and more about interest cost, and how much interest is paid over that condensed timeline. 
It's certainly not for everyone, but it is for everyone who qualifies. Really just the power of allowing all of your banking deposits to work for you, not a bank. 
The website is really built around getting to $0 as soon as possible, but my passion is using the 30 year access to equity to build wealth. 

@Sandy Cunningham Yes, I went through Life Changer Loan. Unfortunately, they're only licensed in AZ/CO/CA currently. 
I ended up liking the loan so much that I left my job in medical sales to join the team. I had never heard of anything like it, 30-year access to equity, simple interest, automatic sweep. It's been a great item to have in my wife and I's financial tool belt. 

Find a lender who doesn't care. Equity is your money, you should be able to use it as such. 
I have a specialized 1st position Heloc that's tied to a zero balance sweep checking account on my property. I transfer in and out of brokerage accounts, and move money around all over the place. I've locked in my access to equity so that when the market turns, I can start writing checks and putting that "trapped equity" to work. 

I really hope the calendar is just pictures of those Biceps every month. 

@Kerry Baird This loan doesn't really work in Texas, because Texas has a minimum draw of $4k on a Heloc I believe. So it doesn't really make as much sense to do all your banking in the loan if you can only withdraw $4k at a time. 
I actually started the licensing process in Texas, but didn't complete it after I heard about those stipulations. Hopefully they'll change someday.