All Forum Posts by: Justin Phillips

@Kristina Zuniga With those numbers, I'd recommend selling as well. Part of the reason being, you haven't accounted for Capex/Vacancy. Those will probably eat up a good portion of your cashflow. From there, it's just an equation of "How hard could this money work elsewhere, with potentially lower risk?"
However, if you feel your area is still has room to appreciate, it might not be a bad idea to rent it for a year or two and really lock in that appreciation. However, most areas are probably closer to the top than the bottom at this point. 

You're definitely in the right place, best of luck! 

@Mike Nelson Love it! That’s why they call dogs man’s best friend! ;)

Agent, Lenders, Flippers, Contractors, anyone in the business: I'd love to hear the most random way you've ever gotten, 
and subsequently closed a lead. 
We've been playing around with some more fun/niche marketing lately, and it has me wondering about some of you all's stories! We bought a redirect domain, and have been having some fun using it on billboards. We've also done some random very low cost, with potential reward things like paying for flyer-space under a local diner's glass tables. 

Marketing can be fun and spunky. Let's hear some of your stories! 

@Chance Love Seasoning is essentially where you draw the funds from your Heloc and sit them in a traditional bank account. When your next lender asks for two months of bank statements, those deposits will be "seasoned" so they won't see it coming from your Heloc. 
The ZBA loan is definitely the most efficient way to do it. I have it set-up on my rental. Currently with the market being so hot, I'm just building up capital to deploy when things shift. When the turn comes, I'll start writing checks out of my line for investment purchases.
I know people that have used their one loan/line to purchase and pay off a ton of different properties. 

Welp, I ran out of time to tell my tenant to switch to Zelle. Aaaaaand, no fees on the rent they sent this morning! Glad to see that, but I don't think I'm going to push my luck next month. It's a bummer though, Venmo is a great platform. 

@Justin Tomsic Haha, no worries. A ZBA is an account that takes the daily balance of one account, and moves it to another, where it works harder. So with this loan, your rental income hits that checking account with a balance of $2000. At midnight that balance is moved (swept) over to the outstanding balance of loan. That drops your remaining balance to from $254k to $252k, making your interest cost cheaper based off the lower balance. When your bills are due, they just swept back off your balance and out to the checking account. 
With positive cashflow, it creates are large snowball effect where your outstanding balance and interest cost are both dropping rapidly month over month. 
I'll shoot over a DM with some further details. 

Very nice! I bet you've seen some nice appreciation, the Springs is a hot market. 

@Chance Love If you season the money from your Heloc, your next lender wouldn't know/care where the funds came from. 

I'm a big proponent of a very specialized 1st position Heloc tied to a zero balance sweep checking account. It offers much more flexibility, interest savings, lower rate caps, and a 30 year draw period. For anyone that qualifies, it blows a traditional mortgage + Heloc out of the water. My wife and I have one on our property, and it's been an incredible financial tool. 

At the end of the day, Massive action beats massive plans, with no action. It certainly won't hurt your business getting out in your community!

On the lending side of my business, I've been surprised in the past with clients who don't know any realtors, and want my recommendation. There may be better ways to market, but I can think of worse ways to spend an afternoon. Best of luck! 

@Justin Tomsic My wife and I had a very similar sell/keep as a rental dilemma. We decided that keeping it as a rental, while retaining access to equity was the best of both worlds. We ReFi'd into a very specialized 1st position Heloc that's tied to a zero balance sweep checking account. This allows us quick and easy access to our equity anytime, and we're able to save a ton in interest by having our regular checking deposits sit on our balance until they need to pay bills. 
Similar to you, I'm all about maximizing returns. When the stock market takes a dip, I transfer from my LOC and buy the dip. When it rebounds, I sell and park that money back on my line until another opportunity presents itself.
It's been an incredible tool for us. We've seen continued appreciation, monthly cashflow, and retaining access to equity making us ready to pounce when the RE market shifts. I can't recommend this loan style enough to anyone who qualifies!