All Forum Posts by: Axel Meierhoefer

@Chris Clothier Thanks for the posts and starting the discussion. We don't always agree but on this topic I am totally agreeing with you. You may not know it, but my expansion to a larger portfolio was mainly based on your book. I recall all the things you described in detail when it comes to being prepared.

To me that translated to an approach that allows me to meet my obligations to lenders, insurance companies, property taxes, etc. as well as being able to handle repairs (within reason) for up to 6 months. Many people told me that keeping this much cash in a simple savings account for almost no interest is foolish and I should or could buy at least 3-4 more properties if I used it as a downpayment. What you wrote in your book and what the BP calculators suggest turns out to be very good advice. I predict that we will all learn a good lesson from it. For me, it mainly means I am following the news and work with my PM companies but at the same time I am calm.

I hope many others here on BP have used the suggestions and ideas for reserves and percentages shown in the calculators.

The main point I am learning from you as well as from Jay and others is to have a clear strategy. I got that for myself when I started and never wavered from it. It has been criticized, vilified, called stupid and many more things. Yes, it is conservative.

Instead of stressing, I am learning and following developments. I look for opportunities to show empathy and for anybody asking, I teach and mentor using my approach as an example.

For anybody who looks for tools to develop a foundation, I can recommend the book "The Wealthy Gardener". I am reading it right now and it is a great life lesson for all of us in real estate investing.

@Tj M. Maybe we should talk. If your goals and strategic ideas align with mine I can introduce you to my sources for good deals

@Jeremy Blackburn That's cool and if the tea leaf readers are right it might go down even further by the time you evaluated all options. Don't let lenders push you to lock right now.

@Jeremy Blackburn Yep, that's what I thought.

If you ever want to talk about it in more detail, let me know. Good luck with your first deal

@Jim Hlavacek You click on the name of the person (Blue) and it should give you the option to connect, message, etc.

@Jeremy Blackburn Three are all kinds of options that would take a long time to type (and I don't love typing :-) )

I would get the max HELCO possible. If you look at it like a credit card balance, having as much balance is ideal. Don't worry about using most or all of it - see it as a "pot of gold" you can dip into and use for all kinds of things when executing on your strategic plan.

You state that you are an agent yourself. Depending on where you are in the state you might have an option to only do a BRR and start your passive income flow that way. The use of the property after reno could also have big impact.

As I said, probably something that is better discussed in a conversation

@Jim Hlavacek As Jaysen mentions, the lender I use is in the list of the post. Why do you want to convert more than 1 property? There is a good spreadsheet that Fortune Builders uses and I know that there are calculators online for that approach but I am not sure why converting more than 1 mortgage is advisable.

This probably is better discussed in a phone conversation. If you like that I am happy to discuss it. Just PM me

@Jeremy Blackburn You current rate is not horrible and it is probable that mortgage rates could go even further down than they are right now. With that in mind I would keep an eye on the interest rate market and get a HELOC in the meantime. When you cash out refi, your mortgage will basically rest and you will be back to paying the bank and almost no principle + have the cost of refi added to your mortgage. With the HELOC you can avoid that.

It is also important to know what your overall strategic plan is. I always work thru that first with my mentoring clients. If you plan to do more BRRR's in the future to reach a certain goal, having an established HELOC that you can use as a credit line as @Christian Manhard was describing will continue to be beneficial. If, on the other hand, you plan to get into cash flow positions with the aim to ultimately replace your income or develop a passive income position, you might need to approach the situation differently.

I would also calculate how much a 15 year refi for your current home would look at a much lower interest rate versus another 30 year if one of your goals is to get rid of the liability of your home.

@James Wise Congratulations man!!! I know we have not always looked eye to eye on certain topics but this is a great victory for you and for all real estate investors. A bad actor like Morris undeservedly gives a movement a negative image and these victories, and all of us making sure that communities we network into know about it, will hopefully help restore confidence and celebrate those who want to help and support people interested in generating economic and financial independence thru real estate investing.

@Jordan Sitzler I have just finished a very large (in my view) exchange acquiring 8 SFR. I worked with Exchange Resources Inc. and would be happy to introduce you to the team I worked with. It was very smooth and most importantly they helped me a lot to make sure all the rules, deadlines, etc. were kept and all payments for closing happened same day. I would immediately use them again.