All Forum Posts by: Steven Thoma

Investors, and in particular those that do *not* manage their properties - how do you track your properties? Is there a program or software that allows you to easily observe all the properties in your portfolio, as well as their details? Perhaps displaying it in a format like a TD Ameritrade or other investing site. I know there are many property management programs available, but I feel these are geared more toward operating the properties rather than tracking a portfolio. Some of the things I'd like it to do/keep track of:

-Track purchase price, details of any loans, and current equity in the property as well as total portfolio equity

-Track current and past rents for properties

-Track total ROI for individual properties, as well as entire portfolio

-Track expenses, be able to upload receipts, bills, etc

Any suggestions are greatly appreciated. Thanks!

-Steven Thoma

Investors, and in particular those that do *not* manage their properties - how do you track your properties?  Is there a program or software that allows you to easily observe all the properties in your portfolio, as well as their details?  Perhaps displaying it in a format like a TD Ameritrade or other investing site.  I know there are many property management programs available, but I feel these are geared more toward operating the properties rather than tracking a portfolio.  Some of the things I'd like it to do/keep track of:

-Track purchase price, details of any loans, and current equity in the property as well as total portfolio equity

-Track current and past rents for properties

-Track total ROI for individual properties, as well as entire portfolio

-Track expenses, be able to upload receipts, bills, etc

Any suggestions are greatly appreciated.  Thanks!

-Steven Thoma

Thanks for all the replies! 

@Juan Monge I think I agree with you here.  No reason to pull that money out and have it just sitting in an account.  Additionally, as you added, my lender told me we can convert it to a standard mortgage with little effort at any point.

@luke 

@Luke Sass You make a great point about interest rates.  It should definitely be considered whether I should lock in this current rate on a mortgage rather than taking a chance on the future.

@Amanda Whiteley Thanks for the input.  I think I'm leaning that way - keeping the LoC for "unseen" issues and to purchase newer properties, and placing a mortgage on the property purchased.

Thanks again everyone!

-Steven Thoma

@Alexander Felice Exactly what I needed to hear, regarding the cash flow.  Thanks again!

@Alexander Felice Thanks Alexander!  I think I agree with you, I'm leaning more toward the standard mortgage.  It's not so much the instant liquidity I want/need from this loan, it's the cash to put into more buy and hold properties.  This leads me to believe the mortgage is the better option.

@Brian Garrett Thanks for the reply, Brian! I apologize in advance, but I'm not understanding the HELOC fundamentals well.

I fully understand that the HELOC can be paid back, then accessed again, etc, and that you only get "charged" on what you've borrowed. My question comes into how the payments are calculated. My lender told me the interest "accrues daily", and that the payment each month is based on this.

Using an example of a 100k HELOC, fully drawn upon, @ 4.75% - he stated that the minimum payment would be $395, which is the 4.75% interest on the 100k that is annualized, then broken down into a 30 day period (100k @4.75% = $4750/12 = $395. Assuming I only pay the $395, I assume my next month's balance would start at $104,355?

It seems to me like the HELOC would be better for short term usage, such as repairs on properties, or flips, but less optimal than a traditional mortgage for long term buy and holds. Is this a correct observation, or am I still missing something?

Thanks for the help, it's tremendously appreciated!

-Steven Thoma

@Aaron K. Thanks so much for your help!

Hi all, I recently purchased a SFR 100% cash to expedite the process. I’d now like to pull money back out to use for more investing. Which strategy would be better, a HELOC or a mortgage? My lender has offered the following: Mortgage - pull out 85% equity @ 4.9% over 25 years HELOC - 4.75% (equal to the prime). Per my discussion with him, interest is due monthly based on the balance of the loan, and the HELOC is renewed annually. I’m not sure I fully understand how the payments for the HELOC would be calculated. Any insight into this would be greatly appreciated. Thanks!

@Aaron K. Thanks for the response. That is exactly what I was worried about. A cash back card would be a good option, then. I just find that the rewards are typically lackluster compared to some of the other options, but the protection of my assets through the LLC is the first and foremost consideration.

Are there any credit cards you'd recommend?

Hi all -

I'm about to obtain a credit card for my REI LLC. My question is how can the reward points be used, and what is legal? I do not want to intermix my personal identity with my LLC for protection purposes. I would assume that using the points for personal travel would be a conflict of interest (and illegal?), and could make me personally vulnerable by intertwining my finances with the LLC's. If the points aren't to be used for travel, what do you all use the rewards points for? Thanks everyone!

-Steven Thoma