Sumit Kaul
loan agains equity/etf vs 401K vs other options
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or could be considered a taxable distribution.Potential opportunity cost of missing out on market gains if funds are withdrawn from investments.Other Alternatives:Home Equity Line of Credit (HELOC):Description: If you own a home with equity, a HELOC allows you to borrow against that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.
Zach Kirchoff
Gap Funding/Lines of Credit
29 June 2024 | 7 replies
Talking about a person or company who will bring in cash for down payments and floating capital between renovation draws.
Patrick Himes
Is now a good time to buy or refinance ?
29 June 2024 | 1 reply
If you still think its overpriced do some more research, what can you do if you owned that home to be worth even more, especially if you’re a DIY person.
Billy Daniel
Multifamily Syndication Mentorship Program
26 June 2024 | 22 replies
I liked the small group feel as it allowed for more personalized attention for each student as well.
Richard Austin Gentry
New Member Post
28 June 2024 | 2 replies
If you have any questions feel free to give me a call.
Mickey Scott
Creative Financing/Relocation for new job in Florida
29 June 2024 | 10 replies
Consulting with financial and legal experts ensures that both the sale and the subsequent purchase align with legal requirements and your personal financial goals.
Jacob Cuellar
Inspectors when wholesaling
28 June 2024 | 6 replies
If you're selling to flipper and the contractor isn't part of that, not sure it will be possible to get a reliable person.
Taevon Fanfan
Unsure how to begin Out of state investing
28 June 2024 | 2 replies
Once you feel you've built a strong team with your first property and have solid systems in place, I would then start buying more aggressively and taking on bigger projects.I suggest reading this BP article on the core 4.https://www.biggerpockets.com/blog/core-four-real-estate-team
ArieAna Overstreet
First Time Investor
26 June 2024 | 7 replies
Of the two options you mentioned, I personally love house hacking.
Francisca Mac
Interviewing Property managers. Please share your recommendations
28 June 2024 | 12 replies
Any other suggestions or advice is very appreciated and feel free to message me directly.