All Forum Posts by: Lori Greene
Lori Greene has started 61 posts and replied 431 times.
Post: People think we're nuts
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Chris Gawlik:
Hey everyone. We are selling our primary residence and moving into a travel trailer behind my parents house. We live in one of the nicest neighborhoods in town. I have a family of 6. A kid in high school and all the way down to an 8 year old. After looking at our bills we are just spending to much money. We are developing a long term plan to develop some passive income.
We have around 250K in Equity. We will be paying off a 3 unit a car and some Bill's. By the time everything is paid off we should have around 200k liquid.
With the net cash flow and our jobs we should be saving around 7k a month.
My wife is the driving force behind this plan. This is pretty hard for my kids and I, but our plan is to have 3 rentals paid for in cash before we move back into a primary again. This also may sound a little crazy but I think the realestate market / stock market is going to be going into a recession in the next 1 or 2 years.
Just wanted to know what some people might think that have more experience / knowledge with our plan. Thanks.
That sounds like an adventure for sure and I love your enthusiasm!!! But it's not for everyone. I think you should decide as a family. The investment plan sounds good and could improve your family life down the road. But you want them to be happy now too because money is awesome but it isn't everything.
Maybe you could use your equity as a HELOC and still pay off those expenses and still invest in more rentals and stay in your house that your family loves. Or downgrade to smaller house in another nice neighborhood. Talk it over with everyone in your family and consider a compromise that keeps everyone happy and still achieves your goals.
Some say go for it, go for it. But are they really considering the feelings of the whole family?
Post: What are your favorite REI Strategies that helped you succeed?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Anyone?
Post: House paid off, should I buy a second property?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Richard Patrie:
Originally posted by @Lori Greene:
Originally posted by @Richard Patrie:
I paid off my house in 2017. I opened a HELOC and secured 180K on my primary residence. I then used the HELOC to buy a rental property and paid 55K. This is a good strategy because you can pay cash, and the deal isn't contingent on obtaining a mortgage. I dumped 10K into it to replace the roof and other exterior cosmetics. I rented out both units for about a year, then refinanced. It appraised at $77,500, and took out a 62K mortgage. I can now pay off the HELOC. Instead, I put a little money aside and made a down payment on another property. I deposit all of the income from my W2 job into my HELOC. This reduces the average daily balance, and lowers the interest paid. You could also deposit all rental proceeds to your HELOC until it is paid, then repeat the process.
I've used this strategy to buy 7 properties in the last year. I bought my first rental in Oct 2017.
If you acquired the HELOC on your primary residence and then move, you need to see if your bank will allow you to keep the HELOC since you no longer occupy the home. Why not stay where you are and buy a second property to rent?
Wow, 7 properties in the last year? That's awesome. You are making me want to try this strategy. I think I need to get out of my habits and try some new things.
Life is short!!
No doubt, life is short. Got to start making the most of it.
Post: What are your favorite REI Strategies that helped you succeed?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
I've been so excited to see all of the creative strategies I've found on BP. And I love reading all of the success stories in this thread. It is inspiring me to get out of my old investing habits and try something new.
In my past, I have mostly done wholesaling, seller finance, rentals and fix n flips. And I thought I had tried a little of just about everything. But then I get on here and see the innovative things other investors are trying.
I would like to hear from everyone what has been your most successful strategy and why.
Please tell me the story of how you got started in that strategy and how it evolved. Please include details or even pictures if you can.
Post: Specific ATL Questions
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
- Put out ads to get sellers to come to you.
- Go to local investor meetings and auctions to learn from local investors about where and how they are finding their best properties.
- Make relationships with local realtors who can get you connected with other investors and tell you about pocket deals (not listed on MLS yet).
- Send owners of vacant properties letters with your intent to buy their property. Sometimes it takes several tries.
Post: House paid off, should I buy a second property?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Richard Patrie:
I paid off my house in 2017. I opened a HELOC and secured 180K on my primary residence. I then used the HELOC to buy a rental property and paid 55K. This is a good strategy because you can pay cash, and the deal isn't contingent on obtaining a mortgage. I dumped 10K into it to replace the roof and other exterior cosmetics. I rented out both units for about a year, then refinanced. It appraised at $77,500, and took out a 62K mortgage. I can now pay off the HELOC. Instead, I put a little money aside and made a down payment on another property. I deposit all of the income from my W2 job into my HELOC. This reduces the average daily balance, and lowers the interest paid. You could also deposit all rental proceeds to your HELOC until it is paid, then repeat the process.
I've used this strategy to buy 7 properties in the last year. I bought my first rental in Oct 2017.
If you acquired the HELOC on your primary residence and then move, you need to see if your bank will allow you to keep the HELOC since you no longer occupy the home. Why not stay where you are and buy a second property to rent?
Wow, 7 properties in the last year? That's awesome. You are making me want to try this strategy. I think I need to get out of my habits and try some new things.
Post: House paid off, should I buy a second property?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Sean Lunny:
Hey Zariyan!
The answer is YES YES YES. Go get that second building. Use that line of credit to purchase something else or multiple something elses lol.
If you DONT use that line of credit to buy another and move, that should still be available to you as far as I know.
Hope that helps!
I agree with you 100%. I just wish I was adventurous enough to enjoy moving. I hate moving. But I do love the idea of using that HELOC to buy several properties though.
Post: House paid off, should I buy a second property?
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
Originally posted by @Zariyan S.:
Hello,
I currently have a paid off house and a HELOC Worth 250k, which I will be using to buy a rental property.
My wife and I were thinking to get started we should buy another house where we would consider living for 4-5 years, and rent out the primary house to pay off the new one. Do you think this would be a good strategy for someone who is interested in getting into real estate investing, considering the fact our house is already paid off?
Also when we move to the new house what happens to our line of credit? Will the line of credit still stay with us? Should we even tell the bank. We don’t want to lose the line of credit in case another deals comes up in the future.
It's a great strategy. I personally don't buy houses to live in as an investment, but I have several friends who have made a small fortune this way. They move from house to house this way, all the while building up their rental portfolio and they have a lot of fun doing it.
It's quite the adventure for them and all funded by HELOC's. They started out in Hawaii. Once they had a bunch of properties there, they moved to Utah and started building a portfolio there.
They could travel the world doing this if they wanted. I guess it depends on how adventurous you are. Some people love the security of a long time residence but others love to move around.
Post: To have a mentor or to not
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
I agree that working with a mentor is a good idea when you are new if you can afford it. But make sure you do research on them, ask them a lot of questions and don't go with the first one you find. Definitely don't go with a big seminar company that will charge you $20k+.
You can find good mentors for much less.
What can also work well is to find a local investor who is willing to take you under their wing and teach you everything they know by letting you get involved in their deals. Instead of paying a mentor, you can offer to work for them for free and birddog for them if they teach you what they know.
You can meet lots of local investors by going to local REI meetings and connecting with people here on BP. Auctions are also a great place to meet investors. Best of luck!
Post: Quick question about Investment property Interest rates..
- Specialist
- Huntsville, UT
- Posts 458
- Votes 249
It's good you're going to keep calling around. But even then, don't go with the first lower interest rate you find. Ask local investors and Realtors for their best lender connections. Then check with a bunch of them for not only the best rate but the best terms. Doing thorough homework on them can save you the most money and get you the best possible terms.