All Forum Posts by: Sam Alomari

Hi Marty, I am seeking same type of loans. Please let me know of you find good lensers.

 Yes but you should also count for reducing your helic balance because Interest only doesn't reduce you balance. You can sell the property after 10 years and payiff your heloc balance or you can pay extra payment every month until the balance is paid off.

@Kelly Conrad, HELOC rate is not fixed. I started at 3.57% then the prime rate was increased a quarter point so I'm at 3.82% now. My heloc is not from the same bank that I have my mortgage with, so it is a separate payment. Your payment depends on your balance. I opted for interest only payment so the payment is not that much if I want to pay the minimum. With HELOC, you have a withdrawing period and a payoff period. mine is 10 years and 20 years respectively.

Here is how you calculate your interest only payment:

Let's assume you withdrawn $50k from your heloc and your rate is 4%

Your interest only monthly payment: ($50,000 X 4%)/12 = $166.67  

Hi Romain, congratulations for your decent mindset! I wish I knew how great real estate is when I was your age,

If you are planning to find a mentor, you are on the right track. A good mentor will give you a huge push in the industry and yes you will be able to capture decent knowledge in a year.

How do you plan to fund your deals? Do you have access to family funds? You understand that you are young and you will have difficulty funding your flip deals.

BTW, don't own rentals in NJ, in my opinion, you should own rentals in land lord friendly states. You can invest in other states and hire a property manager to take care of your property and tenant.

Hi Kaleb, welcome to BP! I suggest that the best way to access your equity is by applying for HELOC (home equity line of credit). It is simple process, almost zero closing fee, and you can opt for interest only payment if you want.

Don't be bothered by the sales signs, keep the condo, use the tax benefit, and access your money using a heloc.

Hi Farakh,

Personally, I would stick with the $120/m cash flow and keep the mortgage for 30 years. Just make sure the refinance cost doesn't exceed the PMI you are trying to get rid of. 4% is not a bad rate.

Andrew, I strongly advise you to educate yourself about real estate before making your final decision. How did you run your numbers? What kind of cash flow are you expecting? Let's do very simple math:

Let's assume you have the money and you are paying cash, also let's not count for any rehab or necessary expenses to get the duplex ready for rent. 

Purchase price: $250,000 (let's not count closing cost)

Projected Income: $1400/month take out 50% (for simplicity) taxes, insurance, vacancy and maintenance.

Net annual income $8,400

Your ROI: $8,400/$250,000 = 3.36% (not impressive) :(

Hi Kelly,

Definitely you can! I used $70k from my heloc to fund real estate transactions. You need to understand that heloc balance is reported on your personal credit, so if you are planning to get personal or conventional loans, then your heloc balance could affect your income to debt ratio and eventually you will qualify for less. 

Hi Craig,

Why would you sign up for merchant service and charge your card? that is unnecessary headache.

Why don't you call the credit card company or your bank and ask for balance transfer checks. Usually they offer you an introductory 0% interest with a small fee (3%). You can write the checks to your LLC then use the money to buy real estate.

Make sure that your ROI exceeds your credit card interest rate. Good luck

Welcome to BP. I vouch for @Andy Rumple, he is a good guy and very experienced. He offered you free opinion, so don't hesitate to reach out to him.