Would you consider to do All in one loan?

Question

What’s the pros and cons?  Thank you!

Sherry McQuage · Answer

Not sure if we are talking about the same thing...my husband and I did and All in One loan (AIO) with CMG Financial (Merchants Bank was the lender).  We used it to tap the equity in our primary residence.  Bought a fixer, extensively updated the fixer, then sold it.  Put all profits back into the AIO (paid down the principle).

The balancing of the AIO checkbook is a bit tricky (I figure it out, then forget most of it by the next time I balance it).

Looking for the next real estate investment to buy.  This time, I want to BRRRRR.  We would use the AIO to buy and remodel the next property.  The AIO turns the equity in your primary residence into a "cash machine"...you can write checks to tap the equity, or use the debit/credit card.  Used responsibly, it beats having to get loans from lenders every time you see a property that you want to buy...of course, the amount of equity you have to tap, your financial discipline, and the ability to screen deals makes a world of difference.

Joseph Coleman · Answer

Looping in @Harrison George the expert in "The All In One" Loan

Sherry McQuage · Answer

Hello Nandy,

We used the AIO loan to pay cash for the investment property (withdrew the $65k to buy the property), then withdrew funds from the AIO as we bought materials and paid sub contractors.  Once we sold the investment property, we "paid back" the amount we'd used from the AIO...now we're looking for the next investment property to buy.

It was super easy just writing a check to access the funds from the AIO, without having to go through the process of getting pre-approved, providing documents to a lender, etc.  We had already done that to set up the AIO.

When we find the next property, we can jump on it.

Nandy B. · Answer

How did the BRRRR with the AIO workout for you?

Harrison George · Answer

Thank you Joe! I appreciate the tag!

Hi @Sammie Xiao! I see this post is a little older. Our company actually offers this product! Let me know what other questions you have so perhaps other people can see it!

The AIO is not a portfolio loan, but there are many scenarios that allow for people to use their highest valued/equity position property to pay off the lower balanced mortgages, and then increase cashflow to reduce TOTAL interest paid. there are so many reasons people use the AIO but I like to split it into two categories:

1) Debt Elimination - We are just wanting to eliminate total debt/expense associated with debt.

2) Debt acquisition - This one helps you use the AIO to acquire more income generating opportunities that help one build their portfolio.

let me know what other questions you may have.

thank you,

Sammie Xiao · Answer

@Landon Bleau I am also wondering the same.  I guess AIO only works well for one property at a time.

Sammie Xiao · Answer

@Sherry McQuage thanks for the info.  I think when you describe turn equity into “ cash machine “ it makes a lot of sense.

Landon Bleau · Answer

One of the big cons I've heard mentioned is that if you want pay off just one property to increase your monthly cashflow, you can't do that with a large portfolio loan.  Ie if you have 10 houses each worth $100k and you want to pay off just one so you can bump up your cashflow, you can't, you'd have to pay off the $1M portfolio, so it's all or nothing.

Would you consider to do All in one loan?

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