All Forum Posts by: Frank Jiang

It's funny because the only people who ever argue with me about the commission reduction not being tangible are real estate agents because they have a vested interested in the outcome.  It makes perfect intuitive sense to everyone else.

Here's a hypothetical deal is selling for 100K, with standard 6% commission (which would typically be split 3%/3% buyer/seller).  By cutting out the middle man (the buyer's agent) you can then negotiate with the seller and the seller's agent to provide 4% to the seller's agent and reduce the cost of the deal to 98K.  Seller is untouched, his final payout is the same, the seller's agent gains 1% and you save 2%.  Everyone wins.  Capitalism at its finest.

I have done this many times.  Saying that the cost is "accounted for" is incredibly misleading.

Completely agree on not needing an agent on the buy side.  This also financially benefits you as you can negotiate down the total commission amount by asking the selling agent to dual agency represent.

Aluminum wiring is in fact a serious fire safety hazard and the inspector is doing his job in pointing this out.  However, you don't need to replace aluminum wiring, you can install copalum crimps.  It's a very budget-friendly way to remove the majority of the safety risk associated with aluminum wiring.  All of the actual connections then become copper connections.

COPALUM vs COALR

I don't think you have any bad decisions here, but as a more risk-averse person, I'd personally pay off the loan in your situation. 8.125% risk-free return is really good. Could you reinvest and beat 8.125% in another BRRRR? Sure you could, but you'd be investing time, labor, and taking on significant risk. You could also reinvest your newly debt-free mentality and additional time you would have spent on the next BRRRR to find a different way to increase your revenue and savings rate.

Oh and congrats on your successful project btw.

You look at the interest rate of the HELOC and compare that to the interest rate of the student loans. In a vacuum, if the interest rate on the student debt is higher, you should pay that off.

That said, here are items you should consider:

- How long will it take you to save up money from other income sources to make another purchase if you were to pay off the student loan?  If you already have cash for another purchase, make your decision based on the interest rate.

- Do you have positive cashflow on the property after refi?  If so, does that cashflow cover the payment on your student loan?  If the answer is yes, you should probably just try to find another property and use the income from the first property to offset the student loan.

My first reaction would be that you're getting phished.  I'd call the bank directly (through a number you find on google, not written on the request for information) and get confirmation before sending your sensitive information.

No

No

No

It's actually only 58% return per year. This is actually achievable CoC return in the commercial space if you get incredibly lucky. Maybe if you have some sort of favorable promote structure with an equity partner. Definitely not something a new entrant could achieve.

To paraphrase The Big Short, for every 1% the unemployment figure goes up, 40,000 people die.