All Forum Posts by: Abner Castaneda
Abner Castaneda has started 2 posts and replied 4 times.
Quote from @Charlie Hardage:
#1 We have a great interest rate, 3.125%.
#2 We use a local credit union that was much more flexible in terms (intro rate and 100% LTV).
Eventually we will use a 1st Lien HELOC but it didn't make sense at the beginning.
This credit union does have a max limit, I don't remember the amount. We will look at 1st lien in the next couple of years when rates come down a bit.
Awesome, thanks for the info. Don't wanna bother you too much with questions, but is it fairly simple to get this set up? I've read that it can get complicated or messy if you don't set this up the right way so I was thinking going with help from someone like the Kwak Brothers from Accelerated Banking.
Quote from @Charlie Hardage:
We use velocity banking and love it. But we use it differently than 99% of other people.
We took out a HELOC, put money down on the principal, then REFINANCED the HELOC and used that to buy investment properties.
Using this strategy, we were able to get into 5 apartment syndications in 18 months.
If used properly, velocity banking is amazing to scale.
We will have our home paid off in less than 4 years from when we started.
We will then get a 1st lien HELOC to scale even faster.
That is interesting. I'm curious as to why you decided to do it like this and not start off with the 1st lien as so many gurus preach?
From what I have seen it seems that velocity Banking is quite controversial.
I understand from a savings aspect that it won't be much of a difference to use a LOC compared to an extra mortgage payment, but is there any legitimacy to the following example:
You paid off the entire balance, now you can use the heloc to buy a cheap rental property. Say it's a 150K limit and you use 50K to outright buy the property and whatever you need for rehab. Repeat the process of paying it off then get another one.
Post: Partnering with family a good idea when I don't have the funds?
- Berwyn, IL
- Posts 4
- Votes 1
Alright so I would like to start investing sooner rather than later. I only have $10K in cash but I am currently in an entry level role with $38K Salary. I also have $4k in non- interest debt. My aunt & her husband have $20k accumulated, however I have the highest credit score out of the 3 of us and I am not sure if my debt to income will come in to play in this scenario. So I am curious if partnering would be a good idea.
I am not familiar with how partnerships work and if the returns would be better together or separately. Could we even qualify for an FHA loan or would it have to be a conventional 20% down type of loan.I am still very much learning everyday so pardon me if this is a novice question but I just want to know what experienced investors would do in this case.
Thanks!