All Forum Posts by: Ivory Hayes

I believe there are different Heloc's out there but under normal circumstances paying down any amount on a Heloc, would indeed make funds available for use again.

My question is dealing with Heloc's, and I don't mean to take the focus away from your scenario @Scott Ellis, but I wonder if using a Heloc has the same effect on your DTI and credit score as any other debt product? For example, if the 50k were on a credit card, using a certain percentage of those funds has a negative affect on your DTI and credit score, I believe the same applies toward a personal line of credit as well, but does that also apply to utilizing a Heloc?

For your help, thanks in advance.

Happy Investing...

From my experience being an absentee owner isn't so bad if you have good property management in place, or even building a great relationship with your tenants would work in helping you manage your properties. My two cents would be to think about renting the two houses out, pulling a heloc out of one or both (if you can find a lender who will allow a heloc on an investment property) and buying your next property cash. That way you have no mortgage on the new property. You can then use that heloc account as your new checking account to pay the heloc off in about 5-7 years (give or take depending on your income vs expenses. I'm not saying purchase their management products, unless you want to, but check out the pill method or replace your mortgage on youtube). Use the rents from the rentals plus the income from your job to increase the speed of paying that interest only heloc off. If you can't find a heloc for the investment properties then you can simply do a cash out refi and allow the rents from the investment properties to pay off the new loan(s).

I also think that looking at purchasing a multifamily is a great way to go simply because you're receiving extra rents from that property that you purchase cash which would assist you in paying that heloc or cash out refi loan off even sooner. Just a little food for thought.

Happy Investing...

Absolutely. It's evident that one would stay within the legal limits of their state. In every situation that's absolutely what you do. It's a given. It's also understood that you can either structure the mentioned items within the agreement, or simply raise the rent amount.

I'd like to be clear here that I'm not telling anyone to ever travel outside of their state's legal limits!

Not necessarily. The beauty of this situation directly between the two parties is you can usually make more flexible the terms inside of an agreement. It can be stated that the potential buyer is responsible for these responsibilities as long as they're exercising their option to purchase or the costs for taxes, insurance and any other owner expense can be passed off to the potential buyer through an increase in the monthly rent amount, crediting the the potential buyer a certain amount when it comes time to exercise their option to buy. The beauty is the flexibility of how you as the owner and them as the potential buyer would like to structure the deal.

Everything's negotiable...

I agree with the thought that Darren Eady provided. There will be no need to foreclose on the buyer with a lease option, simply evict them. Which you would have to do anyway if you had to foreclose on them and get them out. In this case you would put together a lease with a option to buy. You can find docs online and do it yourself or have an agent or atty put the paperwork together for you.

Happy Investing.. 

Attend local real estate investments groups or clubs in your area or within driving distance. Usually there's a variety of individuals who attend in various spaces of the business.

Happy Investing...

If you do decide to utilize the heloc, check out the P.I.L.L. method as far as how to pay it off in less than 10 years. Understanding how to properly utilize this method has been a game changer for me.

Happy Investing...

If you're looking at a heloc you certainly want to know how to effectively use one. Check out the P.I.L.L. method on youtube. You can also find a guy named Michael Lush on youtube and he calls the method, "replacing your mortgage".  For me, a heloc works best for the type of investing I'm involved in. Different methods are right or wrong for different people, for different reasons. Understanding this repayment method when dealing with heloc's has been a game changer for me!

Prayerfully this assists you throughout your journey.

Happy Investing...

Aquila, go to you tube and check out the P.I.L.L. method. That's the best way to utilize a heloc if indeed you choose to do so. Also on you tube Michael Lush calls it replacing your mortgage. Prayerfully this helps and gives you deeper insight in to how to utilize any line of credit so that your money works harder for you and not the other way around.

Happy Investing...

The question I ask myself is why wouldn't I...

Reducing debt, increasing net profits and through a line of credit, the more you pay back the more you have to use again. By using a heloc as my new checking account it allows me to pay off the debt completely without having to pay 2 times the amount borrowed in the forum of interest. Plus the money is at your fingertips whenever you need it without having to pay high closing costs to refinance and having to go through the hassle and paperwork of applying for a refi every time you need cash.

For me and my direction of investing, a line of credit works better than a loan. Nothing against loans because I've had both, lines of credit and loans. I simply prefer a line of credit.