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or could be considered a taxable distribution.Potential opportunity cost of missing out on market gains if funds are withdrawn from investments.Other Alternatives:Home Equity Line of Credit (HELOC):Description: If you own a home with equity, a HELOC allows you to borrow against that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.
Robby Sanchez
House hack renovation ideas
27 June 2024 | 4 replies
But my latest house came with one from a company call Old Republic and thay have simply been great.
Katriana Boncorddo
$420K duplex too much for 99K salary?
28 June 2024 | 1 reply
Your mortgage is almost $3600 a month which means unless you can charge over $1800 a unit per month once you move out there is no NOI.
Mickey Scott
Creative Financing/Relocation for new job in Florida
29 June 2024 | 10 replies
We would be happy to assist you in finding a home here is Florida, however assumable mortgages are fairly scarce.Give us call
Lauren Christie
Inherited small apartment building and have a problem tenant
30 June 2024 | 6 replies
Just tell her you need it empty to do all the repairs mentioned and unfortunately there are no other units to move her into.
Justin Gaskill
Downtown Freemans cottage brought back to life
27 June 2024 | 0 replies
Call me and I can show you How did you finance this deal?
Steve Mizer
Is there a BP app in the works?
29 June 2024 | 4 replies
If there’s no app yet, is it on the roadmap?
Kev Li
Best way to pull cash out of rental property?
28 June 2024 | 11 replies
Hello, I have a rental property that is 100% paid off with no outstanding mortgage, and the property located in a northeast state.
Justin Gaskill
Downtown Freemans cottage brought back to life
27 June 2024 | 0 replies
Call me and I can show you How did you finance this deal?
Jonathan Schwartz
DSCR-type Construction Loans?
29 June 2024 | 11 replies
I can't believe that. whoever your builder is call them out