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27 June 2024 | 2 replies
Here are some options and considerations:Loan Against Equity/ETFs:Margin Loans:Description: Margin loans allow you to borrow money using your investments (such as stocks or ETFs) as collateral.Pros:You retain ownership of your investments.Generally quick access to funds.Interest rates can be relatively low compared to other types of loans.Cons:Your investments are used as collateral, so if their value declines significantly, you may face a margin call (requiring additional funds or securities).Interest rates can vary and may be higher than traditional loans depending on the lender and your creditworthiness.Securities-Based Line of Credit (SBLOC):Description: Similar to margin loans, SBLOCs use your securities (stocks, ETFs) as collateral, but they typically provide more flexibility and may not trigger margin calls as easily.Pros:Allows for ongoing access to funds as long as your collateral remains sufficient.Interest rates may be competitive.Cons:Similar risks of potential margin calls if the value of your securities drops significantly.Terms and interest rates can vary widely among lenders.Comparison with 401(k) Loans:401(k) Loans:Description: Borrowing from your 401(k) allows you to access funds without selling investments, using your retirement savings as collateral.Pros:Typically low interest rates.No credit check required.Interest paid on the loan goes back into your 401(k) account.Cons:Usually capped at a percentage of your vested balance (commonly up to 50% or $50,000).If you leave your job, the loan may need to be repaid immediately or could be considered a taxable distribution.Potential opportunity cost of missing out on market gains if funds are withdrawn from investments.Other Alternatives:Home Equity Line of Credit (HELOC):Description: If you own a home with equity, a HELOC allows you to borrow against that equity at typically lower interest rates than unsecured loans.Pros:Lower interest rates compared to other types of loans.Interest may be tax-deductible if used for home improvements (consult a tax advisor).Cons:Your home serves as collateral, so failure to repay could result in foreclosure.Personal Loans:Description: Unsecured personal loans can be used for various purposes, including investing, but typically have higher interest rates than loans secured by collateral.Pros:No collateral required.Funds can be used for any purpose.Cons:Higher interest rates and stricter eligibility criteria based on creditworthiness.I am a loan officer and we do some of the loans stated above.
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28 June 2024 | 12 replies
Great question- I love that you are looking for HOW to make it work rather than having decided that it doesn't work, that attitude will serve you well.
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27 June 2024 | 5 replies
You will need a local contact (Statutory Agent) to list that can be served with any legal documents.
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26 June 2024 | 2 replies
While I understand that, my understanding and what our own attorney has confirmed, is that there should be an individual who serves as the guarantor in this type of instance.
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25 June 2024 | 39 replies
The kitchen is supposed to serve as an area to prepare food, but in making it part of the rest of the house it becomes necessary to make it aesthetically pleasing, which not only makes it expensive but also tends to impair its function.
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27 June 2024 | 9 replies
You definitely have something in there about quiet enjoyment- serve your tenant a leave violation notice so they know you are serious.
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25 June 2024 | 10 replies
Hire someone professionally locally to work for you and oversee manage the project (a construction manager).Some examples I can provide having worked in the construction industry is - soda bottles filled with urine in the walls, food thrown in the walls, throwing coffee down duct risers, sheetrocked over outlets providing fire hazard...
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26 June 2024 | 38 replies
A lot of the food/bar scene is centralized in downtown Denver, so it's not ideal.
26 June 2024 | 34 replies
Phil -There are various published online material(s) which can serve as guidance.
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26 June 2024 | 4 replies
Financial Goals: If keeping the farm in the family holds significant emotional value, this can justify the purchase despite the initial lack of cash flow.Investment Strategy:If immediate cash flow and rapid portfolio growth are your primary goals, BRRRR properties may be the better option.If you can leverage the farm’s equity effectively, it could still serve your investment goals while preserving the family legacy.Ultimately, the decision hinges on balancing emotional value and financial strategy.