All Forum Posts by: Craig Jeppesen

Most agents will work with you on this as they normally only get half the commission any WSU. They just want a sell and if you bring the buyer they have less work. You can also work this in the listing agreement as well.

Why don’t you just call the bank and tell them that they closed your heloc in error when you just wanted them to pay down the balance? They will probably just reopen it for you. I don’t ever have the bank do transactions for me. I tell them to put the funds in my checking account and I will move money to pay down the heloc. Maybe you used the word payoff when you told them to pay down the heloc. Payoff means close account in the banking world. It is also possible that they only qualified you for the loan based on you not having the heloc anymore. A simple phone call will get it resolved and you can always get another heloc.

He can do a private deal and just pay the commission to the realtor. He saves by doing a private deal if you don’t have a realtor so there is only one commission instead of two.

No, why would anyone wish for bad times for anyone and for your wealth to decrease, and credit to tighten. I like slow gradual year over year growth. There are a lot of unknowns that can happen in a downturn even for up to now successful investors. I also don’t believe The housing market is going down for a long time. The last recession caused a huge housing shortage that will take a few more years to correct. 

The after tax pretax statement. You are not paying a higher interest rate but only potentially losing number is shares invested but this is only a maybe depending on the market.

This is not true. The money does not leave the 401k, it is just invested in a loan instead of a mutual fund. You take the money out and pay it back and nothing changes tax wise.

It really is a 6.5% rate that you pay yourself. The risk is opportunity cost. If the market goes up during the loan you are repurchasing shares at a higher price than you had purchased before so you would have fewer number of shares in the mutual fund than if you didn’t do the loan. But you also didn’t pay any interest to anybody so you save money on your rehab or purchase. You do have a small fee for the 401k loan and risk a tax bill if you get fired. 

Yes if it is lower than the federal applicable rate you are getting a deal so the difference in interest is taxable income.

Why don’t you come up with a good number where you make a good return and are able to get financing and tell the guy your offer. Don’t wait for him just give him your offer. If it works for both of you then move forward.

Read the hoa or neighborhood covenants. 

The fed lowering rates has more of an effect on short term vs long term rates. Also the market has already priced in an expected drop.