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All Forum Posts by: Stefanie Bergmann

Stefanie Bergmann has started 4 posts and replied 12 times.

thank you!

I checked out podio and created an account. I am really getting old apparently cause I need something even more user friendly than that lol

which is a good CRM to use as an investor and also an agent? I have a free CRM with my broker but prefer not to use it because... if you are an agent you know why! lol

I just wanna set up automatic email campaigns and follow up reminders, nothing too fancy. 

Would like something very user friendly cause I 

-am not tech savvy

-need access for both VA and me

thank you!

thank you. I really appreciate the feedback

This is both for investors and agents: (I am both and would consider at least the FB ads for both)

do you have any recent experience with buying Zillow leads and/or FB ads you would like to share?

The reason why I am saying recent is that I have tried out both a veeeerrryy long time ago (about 10 years almost) and paid a ton of money with absolutely zero results.

I have now heard (very limited) more positive results. From what I have gathered is that they are slightly cheaper now and they work better but that feedback was mostly about Zillow.

To give you some tea, I paid $4K to Zillow and it produced nothing fruitful and $2K to someone for FB ads with the same results.

Am considering it both for my Realtor and my Investing business, because frankly I hate cold calling lol and that's what I am doing currently.

thanks everyone for those answers. some really great info out here!

Quote from @Eliott Elias:

Depends on your goals. Do you plan on continuing to invest and build a large portfolio or want to have 5 properties paid off that you can live off of? 


 yes I plan on building a huge portfolio. 

Quote from @Ben Zimmerman:

I think there's some misinformation here.  

Mortgages use simple interest, not compound interest and can be verified with a quick google search of "are mortgages simple or compound interest".  You are paying off the previous months interest balance in full when you make your next mortgage payment, so there is no possible way for this interest to compound since the interest is paid in full each month.  Compound interest means earning interest on your interest.  If the full interest balance is paid each month, it can't grow and compound.  The only way for interest to compound in a mortgage is if you fail to make your required monthly payments in which case foreclosure is in your near future.  As long as you make your required monthly payments, the interest is simple interest.  

The reason that a large portion of your money initially goes towards interest in the beginning years, is because its during those years that you owe the most money.  Interest owed is based on the interest rate and the loan balance, so as the loan balance decreases over time as you repay the loan, the amount of money you owe in interest each month naturally begins to decrease and more and more of your fixed monthly payment begins applying towards the balance as opposed to interest.  Amortized loans have absolutely nothing to do with lenders ensuring they get a return on their money even if you repay the loan early. Early in the loan you owe more money, and therefore pay more interest, there's nothing magical about it.  


As for if you should repay the loan faster that's up to you, your goals, and your risk tolerance levels.  However from a strictly mathematical standpoint it rarely makes sense to do so.  Lets assume your mortgage interest rate is 5%.  Since mortgage interest is tax deductible, you aren't really paying the full 5%.  If you're in a hypothetical 20% tax bracket, you would effectively be paying only 4% interest on the mortgage (pay 5%, but get 20% of that back in tax refunds).  If instead you simply invested that money in something generic like index funds, the long term historical rate of return is 10% annually, less any taxes which at worst will be 20% for long term gains means you effectively earned 8%.  

So would you rather save 4% interest, or earn 8% interest?

While the short term stock market can be volatile meaning you aren't guaranteed those rates of returns, over the course of a few decades (the time to repay a mortgage), the law of averages tend to work themselves out and you can be relatively confident that you will have earned something close to 10% annually pre tax over that timeframe.  As this money grows for multiple decades while you repay your mortgage, there is a massive difference in the amount of money you have by effectively earning 8% after tax, versus save 4% after tax by repaying your loan faster.

Play with a mortgage calculator that allows you to put in extra payments into the calculation such as the one linked above.  On a hypothetical 300k loan at 5% interest, if you put an extra $500 per month towards the payment, you will repay the loan in 216 months, which is 18 years.  However if you had instead taken that $500 and invested it at 10% annually, after 18 years you would still owe $174,125 on your mortgage, however your investment portfolio would have grown in value to $288,199 which means you made an extra $114,000 by NOT repaying your loan and simply investing the profits instead.  If we reinvest that money into something more lucrative like investing back into more real estate projects as opposed to simply buying index funds, the numbers start to become astronomical.  


 thank you so much, that was exactly what I needed to hear. 

I just made my first mortgage payment and am having some serious sticker shock when looking at the interest.

why is it almost all interest? I cash flow very well on this, so could definitely afford to pay more towards principle but I am trying to live off of the cash Flow..

I am confused what is best here