All In One Loan - Too Good to Be True?

Question

Hi all. First time posting here!

I'm new to the real estate investing game and wonder if others have strong opinions (either good or bad) about all in one loans. My finances are solid and the all in one sounds really tempting to me but I'm wondering if it's too good to be true - leave cash in a checking account that counts against your daily loan balance, thus reducing interest payments and helping you pay the loan off sooner . . . ?

Have others used this product? Any words of wisdom? Like I said, looking over the materials it sounds too good to be true . . . and that's often a red flag. Any thoughts would be appreciated. Thanks to all!

Albert Bui · Answer

I've used the strategy on real estate for the past 10+ years and worked with clients as well who have used the strategy to acquire and build/balance their portfolios as well. The premise sounds all great and all but it all assumes they have you have sufficient positive cashflow to constantly keeping your daily balances low (rents/invoices/receipts/etc coming in through out the month).

How has your experience with the strategy been? It comes in many names like pay check parking, mortgage acceleration, banking something or other, and other moniker's and names.

I use this on real estate specifically with lines of credit. Its important the line calculates interest on 365 day basis and gives you a nice period of time or grace period to pay after the period ends (usually 1st -30th of a month) meanwhile the general game plan is to keep deposits regularly coming in throughout the month to lower the "daily interest," calculate thereby effectively utilizing/earning interest savings on all dollars that enter your financial system so you can pay down debt quicker (or accumulate equity/capital quicker/more efficiently).

@Matthew Kwan @Carlos Valencia

Dave Skow · Answer

I recall a  past  client of mine that  did  something like this with a lender named CMG ....I researched it a long time ago  and it  didnt make sense to me  ....I think they  stayed with it  and  ended up OK