All Forum Posts by: Steve Clifford

Hello! 

I have a bit of expertise in this area. Prior to becoming a realtor, I worked at one of the largest online real estate companies (it starts with a Z ;)) in the US. My job was to fly all over the country teaching loan officers and their teams how to convert the leads the purchased through us.

The best way to contact them was through text and phone. Obviously, make sure that you're adhering to TCPA guidelines and vetting each number against the National Do Not Call list prior to calling to avoid large fines. 

I found two techniques to be extremely helptul:

1.) The Double Tap: This is where you call someone once. If they do not pick up the phone and it goes to voicemail, DO NOT LEAVE A VOICEMAIL! Hang the phone up, wait about 15 seconds and call back. The Double Tap method helped my clients get in touch with about 30% more of their prospects on their initial attempt. NOTE: If someone picks up and is frustrated that you called them twice back-to-back, just say you got cut off when trying to leave them a voicemail.

2.) I learned this fantastic text message that has helped many of my clients get in touch with more prospects over the years. If the Double Tap doesn't work for you, just send that person a text that says, "Hi (prospect's name)! I just tried calling you. Are you free?" This should get them to respond and you can get them talking that way.

Just a quick tip, but thought it might help!

Hey Stephanie,

Wow $900K in equity is great! You'll be able to build quite an impressive ADU!

The way I see it is that you have two choices:

1.) A Cash Out Refinance: This provides you with the option to access cash value for the equity you've built in your home. You'll need to go through the process of becoming pre-approved through a mortgage lender and more than likely get your home appraised if you have not done so already. Unfortunately, banks don't accept your Zestimate for the valuation of your home haha. From there, you can choose how much equity you'd like to translate over into cash. This usually takes about 30 days or so and is a second on your mortgage. You may end up paying a bit more on your monthly mortgage, but you'll be able to unlock the equity in your home and increase your home's equity that much further by building your ADU or DADU.

2.) HELOC (Home Equity Line of Credit): This is very different than a Cash out Refinance. A HELOC is best done through a local credit union (in my opinion). It provides you an open line of credit against the value of your home. This will provide you the ability to utilize the equity in your home, however, it's not a cash sum. It's a line of credit at a very low interest rate instead. This provides you the flexibility to do small changes over time and pay them off as cash becomes available.

Based on what you shared briefly, it sounds like a large lump cash sum would be most beneficial in your case. If I'm sitting in your shoes with $900K in equity, I'd take the Cash out Refinance any day. Feel free to contact me with any questions! I also know of a great lender who may be able to help you in the LA area if you're interested. Obviously, you're in no way obligated to use this person.

One thing that I haven't heard many professionals discuss is what your end goal is for your purchase. Are you looking for the equity play or are you primarily looking to turn a monthly profit from rent? If you're going for the equity play, you may want to consider a management company to minimize headaches over time. If you're looking for a monthly profit, then you may want to consider managing it yourself from a distance in order to cut costs. Just a thought from my end.