All Forum Posts by: Joshuam R.
Joshuam R. has started 40 posts and replied 257 times.
Post: Holy H.E.L.O.C. Batman! Que es esto! REVISED
- Specialist
- Florida
- Posts 270
- Votes 91
Thank you, great clarity I appreciate it. @Matt Devincenzo
Post: Holy H.E.L.O.C. Batman! Que es esto! REVISED
- Specialist
- Florida
- Posts 270
- Votes 91
@Ron Brady just did the pre-app and these are the automatic numbers they stated:
| Interest Rate | 7.75% |
|---|---|
| Monthly Payment | $1,000 |
| Loan Amount | $100,000 |
| Draw Period | — |
| Repayment Period | — |
| Property Type | Single Family |
| Appraisal Value of Property | $380,000 |
| Loan Type | HELOC |
Post: What is a fair partnetship profit split?
- Specialist
- Florida
- Posts 270
- Votes 91
Quote from @Greg Larson:
Quote from @Joe Villeneuve:
Sit down and list ALL of the items that must be paid for, both after your buy the property and before, leading up the deal...such as, market research, offers on properties you didn't get, etc... Your list should be at least 20 items.
Now, place a number from 1 to 10, 10 being the most important (or the most work), for each item based on their relative importance to eachother. Note, you can have more than 1 with the same number, and not all numbers (1 to 10) need be used,...but they can't all be the same.
Add up the numbers, and they shouldn't add up to 100...they could, but they don't have to and if you did it correctly, they most likely won't. Divide 100 by this number. This is what I refer to as your Factor of Importance (FOI).
Now, and only now, not before you assign number to each item, assign each item to each partner. Then, add up these numbers (FOI) and you get what each partner gets for a percentage. Simple, accurate, and since I came up with this method, I've NEVER had a complaint...because it's logical.
Uncle Joe at it again, excellent bravo! and good ending to the explanation lol
Post: Please help me understand why STR is considered evil by locals?
- Specialist
- Florida
- Posts 270
- Votes 91
I would be little sad also watching you laughing all the way to the bank $$$$$$ lol
I have not yet done STR but once there the goal is to give excellent product, customer service. That should be it. See you at the bank!
Post: DSCR Loan Vs. Conventional Loan
- Specialist
- Florida
- Posts 270
- Votes 91
Quote from @Andrew Postell:
@Jennifer Roberts thanks for posting. Lots of opinions here and some good ones at that. The main thing I want to point out here first is that you should NOT be "maxing out your DTI" with a conventional loan. At least, you shouldn't be working with a lender that sees it that way. Each rental property we purchase we cash flow, right? I mean, that's the point....so hopefully that's what you are doing. So if I cash flow with each property I should look BETTER with the more properties I own. Make sure your lender is counting that rental income to help you qualify. If they aren't, then go to a different lender. None of this "it needs to be on your tax returns" or "seasoned" or anything like that. I need rental income to help me qualify right now. Every time. But even if you do look amazing after each property you own - the conventional side will limit you to 10 loans (there are some exceptions here but for the sake of time let's run with this). So once you hit 10 THEN we do the DSCR loan.
I hope this makes sense but feel free to post more if you like. Thanks!
Excellent Mr.Postell, just to get my mind clear, basically Lenders helping me with a conventional loan should automatically account future/current rents cashflow to be part of the qualifying conventional loan? The ones that do not for my benefit I shall kick them on their knee caps and run!
Post: Should I raise the rent closer to market on good tenants?
- Specialist
- Florida
- Posts 270
- Votes 91
As a previous tenant and now successful landlord, raising it 25%+ is pretty fxxcked up feelings on tenants that may have tightly budgeted for their lifestyle and capabilities.
But if you do, please give them 60 or 90 days notice of any increase above 5% , it is the decent thing to do, and it is assimilating following the concept of many rent control cities. You this way get to have them prepare for a raise or prepare them to leave your property which then you get to advertise at market rents.
This way you will be at peace and give best customer service of your product and achieve your targeted financial goal.
Once you do raise the rent at minimum 3% even when you are ridiculously banking on a property, it just keeps your gears pretty oiled and running.
Good luck , best wishes.
Post: Nervous First Rental
- Specialist
- Florida
- Posts 270
- Votes 91
Always do worst case scenario that involve real numbers, not others circumstances imagined as your own.
So every decision you need to make you are headed currently in the right direction, viewing best slow and steady out come and worst out come. Once you are at peace with both ends, pull the trigger.
Lowering your monthly living expense is always helpful, that is one of our next strategies, especially when first stream of income goes up, it is powerful when you then turn around and trim more fat.
Keeping all your assets as long as possible in a healthy financial matter is a plus. Only sell when lets say your time and attention makes more money elsewhere or on other tasks.
Never let go of assets just to gather some cushion. Only sell assets as strategic moves such as tax benefits, example 1031 etc. ( I personally do not have experience with this yet, but others do) Do not even think about this strategy, it will only add to the unknow and paralyzing fear.
Find an agent that can show you that they have already a few investments of their own, then compliment your progress with your Aunt's point of views if you like.
Pull the trigger based on the knowledge you know now. Once you move forward, do not regret what you did not know. Because regardless you will be advancing your self do to action.
Good luck best wishes, and just like my digital coach Shia LaBeouf would say "Just do it, yesterday you said tomorrow"
Post: Holy H.E.L.O.C. Batman! Que es esto! REVISED
- Specialist
- Florida
- Posts 270
- Votes 91
Thank you Ron, it is lovely to receive some clarity, shining light on a muddy thought process. I appreciate it.
I went to apply for a heloc and ran into that other option they are offering called Fixed Rate ELOC , I am assuming Heloc is best as I previously used one.
I just noticed you are in New Jersey, I was born in Camden.
Post: FIXED RATE EQUITY LOAN VS HELOC
- Specialist
- Florida
- Posts 270
- Votes 91
This is my question, I am looking at these two products, what are your thoughts?
Fixed-Rate Equity Loan
The best part about our Fixed-Rate Equity Loan is stability. This is a great option if you’re in need of a specific amount of money for a one-time expense. You'll get a lump sum amount and enjoy a fixed rate for the life of the loan with set monthly payments.
Loan Details:
- Borrow up to 100% of your home's equity
- Min/Max Loan Amount: $10,000 - $500,000
- Fixed rate for the life of the loan
- No application or origination fee
Rate:
APR as low as:5.740%
Term:
5-, 10-, 15-, 20-year
VS
Home Equity Line of Credit
Our Home Equity Line of Credit offers flexibility. If you expect to have ongoing expenses, this option is for you. Borrow as you need, when you need it, up to your maximum credit limit.
Loan Details:
- Borrow up to 95% of your home’s equity
- Min/Max Loan Amount: $10,000 - $500,000
- Variable rate, based on the U.S. Prime Rate
- No application, origination, annual or inactivity fee
- Interest-only option available
Rate:
APR as low as:5.750%
Term:
20-year draw period, followed by 20-year repayment period
Post: Holy H.E.L.O.C. Batman! Que es esto! REVISED
- Specialist
- Florida
- Posts 270
- Votes 91
This is my question, I am looking at these two products, what are your thoughts?
Fixed-Rate Equity Loan
The best part about our Fixed-Rate Equity Loan is stability. This is a great option if you’re in need of a specific amount of money for a one-time expense. You'll get a lump sum amount and enjoy a fixed rate for the life of the loan with set monthly payments.
Loan Details:- Borrow up to 100% of your home's equity
- Min/Max Loan Amount: $10,000 - $500,000
- Fixed rate for the life of the loan
- No application or origination fee
APR as low as:5.740%
Term:5-, 10-, 15-, 20-year
VS
Home Equity Line of Credit
Our Home Equity Line of Credit offers flexibility. If you expect to have ongoing expenses, this option is for you. Borrow as you need, when you need it, up to your maximum credit limit.
Loan Details:- Borrow up to 95% of your home’s equity
- Min/Max Loan Amount: $10,000 - $500,000
- Variable rate, based on the U.S. Prime Rate
- No application, origination, annual or inactivity fee
- Interest-only option available
APR as low as:5.750%
Term:20-year draw period, followed by 20-year repayment period