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All Forum Posts by: Zach Adams

Zach Adams has started 24 posts and replied 161 times.

Post: Happy Thanksgiving BPers

Zach AdamsPosted
  • Investor
  • Vista, CA
  • Posts 163
  • Votes 58
Greg C. Happy thanksgiving to you!!

Post: New Member From San Diego, CA!

Zach AdamsPosted
  • Investor
  • Vista, CA
  • Posts 163
  • Votes 58
Kevin Abihider welcome to BP! Check nsdrei.org - great local group. I'll be at the January meeting. What are your goals? Flips? Commercial? Buy/hold? Feel free to PM me any questions! Z

Post: Banks are crazy

Zach AdamsPosted
  • Investor
  • Vista, CA
  • Posts 163
  • Votes 58

80% LTV. No points, no closing costs, no fees. I was surprised by the 80% LTV and no appraisal.

Post: Banks are crazy

Zach AdamsPosted
  • Investor
  • Vista, CA
  • Posts 163
  • Votes 58
Originally posted by @Percy N.:

Zach Adams what rate did you get?
Is it a commercial product or residential?

 Prime plus 3.25%.  For the first year, only prime which I intend to pay off.

Post: Banks are crazy

Zach AdamsPosted
  • Investor
  • Vista, CA
  • Posts 163
  • Votes 58
Originally posted by @Joe Villeneuve:

@Brent Coombs LOL. Not really. The first person he talked to probably didn't know. She only knew what "products" were available...as in existed at the time. She didn't have the authority to offer it, but as he went up the ladder, he found someone in the organization that did know, and had the authority (or direct access to the person who had the authority) to offer the LOC.

 Always like what you have to say Joe!  

Post: Banks are crazy

Zach AdamsPosted
  • Investor
  • Vista, CA
  • Posts 163
  • Votes 58

So today I decided to take a HELOC out on a rental property that is out of state. I called BofA and the lady said no HELOCs on investment properties. No way I thought and asked to speak to someone else. After much effort I finally found somebody that would work for me at the same bank!

Advice: Right now there are some attractive no-cost HELOCs out there, even locking prime, no fee, zero closing, etc.  Take a look, now seems to be a good time for a lot of places.  Atlanta had appreciated enough that I'd gained some good equity.  Going to use this money as a downpayment for my next owner-occupied MFH.

Bottom line, the banks don't know what they're talking about often.  At least it takes time to find someone that does.

Now to find a deal!

Post: Owner Occupied Re-Fi rates

Zach AdamsPosted
  • Investor
  • Vista, CA
  • Posts 163
  • Votes 58
Originally posted by @Jerry Padilla:

@Zach Adams

You are right about that rate. You would need to pay PMI if the LTV is still at about 84%. It will be much less than FHA's MIP.

I thought it was an LTV of 80% - you only need 16% equity to prevent PMI?

Post: Owner Occupied Re-Fi rates

Zach AdamsPosted
  • Investor
  • Vista, CA
  • Posts 163
  • Votes 58

Hi BP! It's good to be back - been pursuing other career ideas recently, but looks like I'm coming back to REI!

Last year I bought a duplex using an FHA with 3.5% down as an owner-occupied. Currently doing improvements and looking to re-fi very soon with a large downpayment. Current note is $410k and looking to put $60k down to get loan to around $350k. The reason I'm doing this and not putting it into other properties is to make this duplex is cashflow like crazy when I leave in 2- 3 years. I also will be cutting my living expenses by ~1/2 greatly increasing my capital flow.

Anyways, getting a conventional with a 750 FICO, what are rates like today? I heard 3.75.  Thoughts? Is 30 days the quickest I can close a Re-Fi here in SD?

Hope everyone is doing well -

Zach

Post: What is your savings rate?

Zach AdamsPosted
  • Investor
  • Vista, CA
  • Posts 163
  • Votes 58
Originally posted by @Trevor Ewen:

@Zach Adams

I think a personal finance creed is one of the most powerful things in real estate investing. It actually allows you to feel better about investment risk, when you realize the money you have invested would've otherwise been spent on lifestyle inflation.

If you can control your lifestyle and have money to your name, you have the best wealth building tool in the world: self-control.

One thing that I do find interesting is most of the very hardcore early-retirement types tend to avoid physical real estate as an asset class. They tend to exist in the index-fund products for the most part (ETFs, low cost mutual funds). My assessment is that real estate is very time intensive and management heavy, which is rarely ideal for someone hoping to travel the world un-tethered. 

The valuable lesson is that you should really enjoy the process of real estate investing and providing value in properties. If you don't, it's probably too involved an asset to pursue.

As for our approach. We aim for 40% of our income. Retirement savings at my company is unbelievably generous. And we treat that as a separate and more conservative stream of investment. All real estate cashflow and capital gains are re-invested. All side work is re-invested. We can live easy off 60% of our income and everything else is ours to invest and learn. 

 Trevor

Thanks for the response. I like the comment about self-control and is something I've learned as well.   Great point about the EREs avoiding RE. That's something I saw as well when I first started researching investing a few years. Definitely got some good ideas from them but never really subscribed to the index fund idea hook line and sinker. Glad BP came along :) 

Zach

Post: What is your savings rate?

Zach AdamsPosted
  • Investor
  • Vista, CA
  • Posts 163
  • Votes 58
Originally posted by @Christopher Brainard:

@Zach Adams

Saving is great - it appears you have a good income and you're very responsible with your money. Most of us on this site are real estate investors and I doubt we track savings. We do, however, track net worth. I update mine monthly and enjoy watching that figure go up.

As far as a budget, I don't keep one anymore. I used to be really strict but money just isn't that tight, so I splurge here and there. I keep as little money in savings as possible, aside from a 9 month emergency fund. I try to keep my money working, instead of me working for the money.

-Christopher

 Thanks for the reply.  I do a monthly net worth calculation as well.  I find it very helpful.  Also, I guess it was implied, but the whole reason for a SR calculation for me is to build capital for investing in RE.  I agree about not keeping money hoarded away.

Zach