All Forum Posts by: Ryan Arsenault

Assuming you are staying in the property for awhile cash-out refi is probably your best bet. HELOC's typically have variable rates that can jump up if you have the lien for awhile. Rates are obviously very low now but 2009 still gives me nightmares.

Downside of cash-out refi is, typically closing costs are more than HELOCs but rates tend to be much better for cash-outs. 

Hope this helps!

I'd try reaching out to small local banks like you mentioned or see if local credit unions are doing them. Additionally, larger banks like Bank of America, Citizens, etc. still offer HELOC's

@Devin James Thanks Devin! She is on the deed of our primary and she's my fiance so pretty serious lol. Definitely want to get her onboard before moving forward. I think having her listen to Rich Dad Poor Dad is a great idea. She drives a lot for work so could be a great time to listen. 

Appreciate your feedback!

So I'm trying to get my next deal started and will be using creative finance to fund the deal. My primary residency has close to $200k in equity so I plan to use it in either a HELOC or cash out-refi to complete a BRRRR deal. I also have about $20k in cash. During the refinance process I will take the cash out I invested and pay off the lien against my primary.

My challenge I'm bumping into is the fact that my significant other is not onboard with the idea. She thinks that taking out a 2nd mortgage is a huge risk and irresponsible. She believes it needs to be used for buying our next home or redoing our own home. I agree with her that a HELOC can be a huge risk if used irresponsibly or even if its a bad deal but used correctly it can be a huge jumpstart to my/our real estate career.

Does anyone have experience educating a significant other to get them comfortable with the strategy? She isn't interested in RE for context. Thanks for all the feedback!

@Mike Rice As far as I understand it, you can write-off startup expenses associated with the LLC you are forming. This can be things like education expenses. I would also wait till Jan 1 or later. I did something similar to what you're considering and then I had to pay for filing taxes early on. You also don't need to qualify to pass through the LLC's loses to your W-2 income. I worked with Prime Corporate Services. They hold consultation calls. Just be aware they are trying to sell you something at the end of the day. Hope this helps but feel free to DM me if you have questions.

*not a CPA or tax professional. 

@Benjamin Brewer First and foremost, congrats on getting into REI! I have a similar situation actually where I have 100K+ in primary residence equity along with cash. I have to admit it has been tough to pull trigger just because the stakes feel so high (risking primary residency, etc.).

Additionally, I've been trying to find a deal off market to BRRRR since the MLS doesn't have many great deals. This part has been tough since I'm in Maine and there aren't a ton of wholesalers in area. Since you're an agent I'm sure you have a great network to find an off market deal so definitely utilize that.

I don't know your market but it sounds like you have a great setup to purchase a property and use remaining equity/cash to rehab a property. Best of luck!

@Karl Denton Hi Karl, personally I've found reaching out to other RE investors that I know and seeing who they use has been the best way to get a good contact. This goes for CPA or any other type of contractor. 

Going to a local REI meetup and asking attendees who they use would work too. Hope that helps!

-Ryan

@Tyler Craig Whenever you are ready to protect your assets I recommend using Prime Corporate Services! Best of luck!

Thank you! @Dmitriy Fomichenko

@Grace Wang Thank you! This was my first flip and will eventually rent it out. Pictures attached! Thanks!