All Forum Posts by: Allen Tracy

Anyone here have a HELOC through Beth Page Federal Credit Union? I've narrowed down my search to using them and figured I'd check here for reviews before submitting my application.

That's so awesome to hear.  I've been at this for 17 years now and have been thinking about a 5-10 year exit.  Very inspirational to hear your story.

Welcome, I'm also here in LA working in visual effects for film and television.  I currently "house hack" by renting my home out for filmings, it's pretty much covering my mortgage at this point.  I'm close to submitting all of my paperwork to get funding and will start looking to build my team and invest out of state.

The videos/articles here are great.  I went to my first investing meet up in Hollywood on Tuesday night, I believe they happen the first Saturday every month down in Long Beach and the first Tuesday in Hollywood.  They post in the Events section under the Network tab on this site.

I just finished up a bunch of the books sold here on investing/rehabing/remote investing.  They're kind of just big recaps of all of the videos/articles on this site but are great as audio books and help keep the motivation going to invest.  I'd recommend them.

Good Luck!

I haven't heard of any.  There is one in Hollywood tomorrow that I'm going to try and attend but would love to have one out in the valley closer to us.  You can look for local events here:

https://www.biggerpockets.com/...

I'm currently looking into HELOCs as well but I plan on using the BRRRR method on an out of state investment property so I only have money out for around six months at a time. Since a HELOC is basically a second mortgage it would make me nervous to have that money out for extended periods of time. While it's rare, most banks have a clause where they can demand repayment all at once.

Part of it would also depend on how much equity you have in your home. If you have enough equity that you could borrow that $50-$60k and still be head above water if the market took a big down turn then you may be ok. If the market takes a downturn and you're maxed out on your equity after the HELOC you could end up owing more than your home is worth.

I think if you were planning on using the HELOC on a home you were wanting to sell soon and could add value with it where you would recoup the cost it might make sense. It also depends on how long you think it would take you pay that HELOC back down. If it's going to take you years to pay it off, the market goes way down, and you lose a lot of equity in the home, I'm not sure what the bank would end up doing.

With all of the equity in your primary home you can look into a HELOC to fund your real estate investments. This is the route I plan on going. If you use the BRRRR method you could potentially borrow from the HELOC then pay it back fairly quickly. That would allow you to max out your 401k while also getting into the real estate game. Just something to look into.

@Jay Hinrichs thanks for the reminder about that. I remember reading that somewhere when I first started looking into HELOCs. They said while extremely rare it's possible for the bank to call back the entire amount at any time. I'm hoping by using the BRRRR strategy that I'll only have chunks of money out at 3-6 months at a time. Definitely something to be aware of though.

Exactly, I was hoping to find a turnkey company that would find the property for me, I would buy it for cash pre-rehab, the turnkey company would provide a contractor and oversee the rehab, also provide a lender that would do the refinance, then the turnkey company would manage the property for me in the end or provide a management company. I guess it might be too much work for them with not as much profit as if they just sold it to me after the rehab? Most of the ones I've seen that are selling turnkey properties after the rehab are trying to sell them for market value. That pretty much eliminates the BRRRR part of the BRRRR+Turnkey model and makes it just a regular Turnkey property.

@Account Closed Thanks for the great info about the Columbus market.

@Robert Ellis I hadn't thought about Dayton, thanks for that tip, I'll have to look into that area more.

Good points to think about. My best friend's wife and her mother are both agents but not investor agents so hard to go by their word. I plan on asking my CPA about his thoughts on it but mainly works for large farms so I'll probably be looking for an REI CPA and lawyer soon. I need to build my entire team still but want to narrow down where my money will be coming from and the area I'd like to invest in before I build that team.

My hope is that if the property is cash flowing it won't matter if the market turns south as long as I can keep renters in the property.  I tend the inflate all the numbers when I run my calculations just to make sure there is tons of wiggle room.  Thanks for the 20% tip on rehab costs.