All Forum Posts by: Kiley N.

Two questions:

Assuming my credit qualifies and the SFR property cash flows at an acceptable level:

1. Would it be advantageous for loan qualification purposes to become a co-borrower on a mortgage with my LLC (as opposed to a guarantor)?

2. Are there lenders that would do 80% or higher LTV on 30 yr fixed mortgages with my LLC and myself as either a personal guarantor or a co-borrower on the loan?

Thank you very much!

@Daniel Mills PMed you.

@Allyssa McCleery :  Great advice!  In the beginning it's tough to differentiate the movement from the progress but I will hopefully get better with that over time.  I enjoy hearing from other investors on how they've evolved their businesses and processes.  Thanks for sharing!

Hi @Alex Corral :

Great discussion above!  I would add that the closing costs should not be forgotten.  That money can essentially be considered prepaid interest (it's money you pay that goes to someone else).  These costs increase the effective rate that you would be paying on the mortgage should you choose to go that route.

Going back to your original post, the key to your strategy appears to be the focusing all available cash flows on repayment of the HELOC. This can be effective if you are able to find a good HELOC promo rate and repay your balance within the fixed-rate period.  You estimated 6 years to repay your first 3 properties which seems reasonable for a promo fixed-rate period.  This will mitigate the risk of rising rates while still providing you liquidity on amounts repaid and  you save on the closing costs.  win-win-win.  

Once your promotional period is up it will be up to you (as it is for each investor individually) if the liquidity of a variable-rate HELOC is worth the interest rate risk going forward. If all goes to plan, however, you will also have equity in 3 free and clear properties...

@Ola Dantis :  How much of your business have you been able to outsource?  Are you in the process of building your team to free up more of your time?  Thanks for sharing!

@Dave Van Horn :  I like the distinction between working in the business versus working on the business.  Going through your backward-looking thoughts on what you would have done differently is very enlightening and I really hope to hear many more perspectives on this.  Great guidance for beginning investors like myself.  

I also love your succinct description of the CEO role.  I think it applies equally to the CEO of a company of one (like me).  

Thanks for sharing Dave!

@Joe Villeneuve :  Is there a division of your business where your efforts achieve maximum leverage?  in your experience what are some of the common areas where you find that investors can making exponential gains by working smart?  

@Samir Shahani :  You're right about the 80/20.  Thanks for putting out the explanation better than I could have.  I am curious where investors are choosing to concentrate their 20%.  

It is true that the context of goals will color our strategies but I would like to hear from anyone regardless of their position in the business.  

Cool that you're out there bringing in the deals!  What is your back process like?  Do you have a team that handles the rest (while you coordinate/make decisions)?

@BP Community:  

The sheer diversity of successful RE strategies has always intrigued me as it opens up success to so many different types of people. It is so interesting to see how people structure their businesses and how they evolve over time. It seems there are as many different business models out there as there are investors. What is yours? What do you do yourself and what do you sub out (contractor, VA, funnel, etc.)? Where do you lay down system infrastructure and where do you get down and dirty?

From the beginning investor who does everything themselves to the professional corporation that has specialized teams for each task:

Where is your personal 80/20 effort focused in your business?  Or, if you could redesign your business from scratch, where would your 80/20 be?

@Jill F.

Great news!  Put off the next worries until after the holidays!