All Forum Posts by: Marco Anemone

@T Sanch

Your math is correct, but consider this: If you have $30k of potential profit by flipping that property, that means you have (at least) $30k of equity. If you rent that same property, generating $350 a month in positive cash flow, you still have (at least) $30k in equity (profit). It's just not realized in cold hard cash because you haven't sold the property yet. In short, you still have the profit, it's just in the form of equity. If you really want the $$$, then simply pull it out via a loan and keep collecting the rent (although a bit less of it as cash flow).

@Bryan Lyde, I was responding to the question..

Originally posted by @NIcholas Hamel:

@Wayne Brooks

If there are no savings how are people paying off their mortgage in 5-10 years?

And simply illustrating that it cannot be paid off that quickly without extra payments towards principal.

@NIcholas Hamel, if it's a 30 year mortgage loan, and the only method they are using is "velocity banking", then they are not. Here is a simple example that illustrates it. If you take out a 100k loan at 5% for 30 years your principal and interest payments are $536.82 per month (for 360 months). If 100% of that payment went to principal every month it would take 186.3 months to pay off the loan. That's 15.5 years. So if it takes 15.5 years to pay off a loan, paying no interest at all, how can it be paid off in 10 or so years when you factor in the interest if you don't make extra payments towards the principal? Mathematically impossible.

@Alexander Felice, great episode, great information, and super entertaining! Please clarify, when you say lesser of 75%LTV or HUD, are you referring to the HUD at the point of delayed financing loan? And if so, how do you go about getting it added to the HUD?

@Wesley W.

Try goilawn.com They use aerial photos, not satalite images. I believe they offer a free trial. Good luck!

@Daric Myers That info may be correct, but consider this. I use my card regularly for the cash back points and the balance is paid every month like clock work so I never pay interest. That said, since I use my card regularly there is always a balance on the account (not a past due balance since that is paid when it's due. But the current balance, which is reported to the credit reporting agencies every month). So if my billing cycle is the 8th thru the 7th of each month and I charge 10K from November 8 there Dec 7, I then receive a statement with a payment due by Dec 18th for 10K. In the mean time I continue to charge another 3k on Dec 10 and Dec 11th. The credit card company reports a balance of 13k to the reporting agencies on Dec 16th and on Dec 18th an automatic payment is made for my statement balance of 10k. My balance is now 3k. I continue to use the card and rack up another 11k during the next billing cycle and the process continues. The point I'm making is that credit reports will show a balance on the credit card even though you pay your entire balance for the billing cycle that is due. Hopefully I explained this ok. And sorry for typos. Posting from a cell phone.

@Brie Schmidt I think Brie is providing good advice. You shouldn't have a problem obtaining a conforming 30 year fixed loan, but if there are underlying issues you are not aware of, not only can you not address them but you may end up facing the same issue with a different lender. Really, it can hurt to ask. If you need another contact feel free to reach out to me and I'll give you info for the lender I use.

Do a search for "non owner occupied HELOC" or "credit union non owner occupied HELOC". there are several that show up. Also, I would not use the term investment property when inquiring about a HELOC. People on the other end of the phone are likely to equate investment properties with commercial properties.

@Joseph Clark I use capital one spark for the 2% cash back. Recently started using a card from Alliant credit union. It offers 3% cash back on all categories for the first year and 2.5% there after. There is an annual fee so you'll have to spend about 50k a year for it to make sense. This is my first post, and I'm not really sure if it's allowed to post a link, but if someone can let me know I'll be glad to do so.