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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or could be considered a taxable distribution.Potential opportunity cost of missing out on market gains if funds are withdrawn from investments.Other Alternatives:Home Equity Line of Credit (HELOC):Description: If you own a home with equity, a HELOC allows you to borrow against that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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26 June 2024 | 8 replies
If someone injures themselves and sues, they will be suing the LLC and not you personally.
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22 June 2024 | 1 reply
I wanted to know if there was any reliable in person seminars for real estate investmenting in Fairfield county Connecticut..any suggestions?
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27 June 2024 | 14 replies
Until you work out the bugs in your sysyems and procedures.Or, if you invest farther away, do a personal, physical (not Zoom) walkthrough of the property before you sign off on it.Surprises and out of state investments, don't make good bed fellows.
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26 June 2024 | 3 replies
In total we will have 1 LLC and two separate trusts.All that said, I guess my questions are as follows:-We need to set up an operating bank account for renovation work for our new property, should we set this up through the trust, through our existing LLC or just pay using our personal accounts?
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26 June 2024 | 1 reply
Personally, I find my deals on the MLS (in CO, IN & FL).
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24 June 2024 | 2 replies
Thank you all, and I look forward to beginning my journey in real estate as soon as possible!
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26 June 2024 | 22 replies
He has 2000+ units and a 200M development pipeline and is always in the news in my city.My ExperienceI followed him for months and spoke a few times in person at events.
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24 June 2024 | 17 replies
I am starting out on my real estate investment journey and looking to buy an investment property in the Phoenix area.
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26 June 2024 | 1 reply
Don't stop asking until you find the right person for your situation.