All Forum Posts by: Account Closed

@Jason D. I bet you can form an llc in Florida that would pay Florida income tax. The 0% we have here😃. Side note, I’m moving to the Tampa st Pete area in 4 months for college. Any areas I should look at for housing or avoid? I’ve only been once so I don’t know the area well.

well if you posted more information, it would be easier. A truck? Between 10 and 15 mpg should be close to what it should get. A car? 20-30 would be close. In no way am I saying to get an estimate, but an approximation. You know if a house is in several bad shape it will need more work per square ft than a fairly decent house. 10-15 per sq ft or 20-25 per square ft is a lot better than just scoffing at someone. And if you would include your actual area (since everyone will say “yea but my arrangement is more expensive”) that can be taken into consideration. A house that costs 65k to rehab in a similar condition to one in Minnesota will rehab for less. Is life insurance companies can fairly accuretly predict when you will die, people can have a ball park estimate. I know you have rehabbed many houses, and if you averaged out your houses, given they are in the same general state of disrepair, you would have yourself an average age of what’s I cost to repair cost to repair those in such a condition. Everything can be a averaged out. You can give a range on how much apples cost, without knowing all the details such as type and weight. 

@Guy Gimenez thanks for giving your average. Too many smart *** people here giving hundreds of nonsense answers, “it’s impossible, it depends, you have to do all the math and figure it out.” That’s like a car company saying “gee we can’t tell you how many mpg your car will get, there’s too many variables”. There’s always an average....😒

@Jeremy Z.the average daily balance is why it works.... saying don’t mention it negates the whole strategy. If you looked at an amortization schedule you’d see that a 5k loc paying off 5k of principle in an amortization loan, you save several times that in interest. And it’ll cost you less than 1k in interest. How does saving 20k+ while costing less than 1k = a scam when the math shows it’s true.... paying a little extra principle does not negate much interest. How many 100 extra payments would you need to pay 5000? 50. So you’re essentially paying that tab once. And it costs you a few hundreds dollars. Saving you thousands as you jump several months and even years into the Payment schedule 

@Jeremy Z. it’s always ways to say some who is successful is a scam. I’m not saying he is or isn’t. But there are several people who back this up too. There are many videos with diagrams. I thought it was all a scam, but I’ve spent several hours and done the math a few times and understand it now, because it does sound too good to be true. And yes, like everything, playing with debt to pay debt can get a lot of people in trouble. But I’m very disciplined with my spending 

@Daniel Weed you’re obviously missing the point. You don’t multiply 5000 by 6% to get 500. You NEED to look at the amortization schedule. An entire schedule. You need to look at all the interest payments you’d save based off that table. Like I said , a 5000 chunk cuts off several months of payments. Once you cut a month of payments, you cut the principal AND interest. Since a mortgage is front loaded with interest ( that’s they key part, front loaded with interest) you’re saving ALL that  interest. So in the first fee years, a several thousand chunk will save you many more thousands. If you’re just going to retort, and not look arbitrary an amortization schedule to show my point, don’t even bother responding, because you’re not looking at all the facts and therefore not have an educated discussions 

@Daniel Weed you really would need to look at the amortization schedule, see how much a chunk of X dollars would save in interest. Ie, if you owe 100k, and you use a 5k chuck, you would skip all those interest payments from 100-95. Which in the first years of a mortgage are the majority of your payments anyway. It’s a diminishing return the more times you chunk, because your saving less interest each time. But you could save several hundred thousand dollars on a single house. If you pay off a house in 7 years, you can have all that cash flow because your mortgage is paid off. You could apply for a larger heloc which would then allow you to buy properties cash, fix and refinance, or keep the heloc with the balance and pay that off. 

But you’d have to look at an amortization schedule. That’ll show you very easily how much you’ll save very quickly. 

@Daniel Weed you can do it by hand and see how much money you'll save fairly easily. Granted it won't be 100% accurate. BUT a $5000 HELOC at 16% (my personal line of credit is at this rate) would cost you $800 a year. And that's by never paying it. So If you were to implement this strategy, your average daily balance would be less than the max 5000 most of the time. But even at $800 you can see that a single 5000 chunk, on a 100k house, you'll shave off around 24k in interest alone. Even if it were to cost you the full 800 a year to shave off 24k, it's worth it.

The heloc strateygy is technically making payments to your principle. But by paying an extra 100 or so (can’t imagine many people being able to dump that much extra per month into it) it barely dents it. It’s the 5000+ chuck that you take out that you see tons of interest get reduced. 

Also, should you need the money, and you are just paying extra payments, you can’t get the money back. If you were using your loc as a savings account like the strategy suggests, you could always pull from it in an emergency. 

If you’re worried about rising interest rates, even at 22% a 5000 heloc would cost you a MAX of 1100 a year while initially saving you about 24k in interest payments based on a 100k house, just use a smaller heloc. Don’t use a 25k chunk.    Use only a 5000-10000 chunk that you can more quickly pay back. Even if you have access to a 25k heloc, the extra buffer you aren’t using can be used for emergencies. And a heloc is a much lower rate than a credit card.      

@Joe Splitrock no side hustle jobs when you’re active duty military, still have to go to work, and don’t get paid lol