All Forum Posts by: Bryan Lyde

@Babu Ramadoss I leverage my team mostly and local reia networks. I can recommend shecky who chimed in above with hrre, they run a tight turnkey ship with a good retail product in indy. REI nation is one of the bigger turnkey companies with mr. clothier. I can't speak for the profitability of their inventory but their product looks good.

@Babu Ramadoss you're going to get the it depends answer. it depends on your short and long term goals. many will say chasing appreciation is gambling like the stock market. others say cash is king and never put your money where roi is not maximized.

personally, my goal is replacing w2 income in 7 years so cashflow is king for me. that also means I need to use less leverage with lower roi, or do more brrr which would like take longer based on what I buy.

your market will likely dictate one or other, and for the record I ignore appreciation in my underwriting as a buy and hold investor. the appreciation will never be realized until I refi out down the road.

@Dejuan Calloway you need to look up Michael blank. great book and sells a cheap xls for underwriting called sda.

@Justin N Yurchak look up citydata.com, the milken report, and Marcus and millichap report. the last 2 are multifamily focused but provide applicable market data for top markets

@Laura George in my experience there were no fees, no annual anything. smart shopping a lender can avoid that.

If you believe the general principle that you can use a dollar more than once, and leverage equity smartly, then heloc is a great way to reach goals faster.

If not, the are many other ways which are also acceptable.

It sounds like you have had a bad experience with heloc. please share so others can learn.

oops, sorry marco. tagged wrong person. your statement is 100% correct

@Marco Anemone, this isn't a question of minimum payments, but applying extra available cashflow every month to pay a debt early. your assumption does not take this into account.

@Ellis San Jose, dismal. depending on where one is in their FI journey, rate of return may not yet be the focus, or perhaps they are past the accumulation phase, or even on the far end of the conservative spectrum and prefer cashflow to roi with no debt as build a portfolio.

I'm not in favor of paying down good debt prematurely, but believe there are better methods than snowball for getting rid of bad debt like a primary.

@Justin N Yurchak IMHO, where you sleep at night or having the ability to drive across town to place eyeballs on it are of little consequence compared to having a really strong team you can trust.

find the best PM, realtor, title company, and CPA you can, know your numbers and your plan, and execute. the problems are the same so hire good people that fix problems and free you to spend your time doing higher income producing activities.

I've run the math in a variety of scenarios and interest rates. VB will pay down debt faster in a few scenarios:

1. If the interest on the heloc is within 1-2 points of the mortgage

2. you are less than 10yrs into the amortization schedule

3. you use the heloc as your emergency fund and start paying down debt immediately vs building a reserve as dead cash first for 6mo.

ive found the extra savings to be a few thousand to over 15k depending on the mortgage size and 3 to 5yr period. whether that is compelling enough vs snowball is personal preference.