All Forum Posts by: Zachary Clevenger

@Eugene Rogachevsky

Thanks for the information! I fully plan to use the HELOC solely for emergencies or investment opportunities only. I would prefer to pay off the HELOC and start fresh allowing me to avoid a future headache. I do not, nor have I ever, liked to accrue a lot of debt. And I agree on your statements of it coming back to haunt people....it happened to several people I personally knew.

@Jay Hinrichs

Okay, so if I understand you clearly... develop a healthy relationship with a local lender and get fully vetted/approved prior to any refi attempt? I am just starting out in investing, but believe me I was around and witnessed first hand the hard crash that took place in 2008-10. I bought my first home 4 months before the crash and instantly lost money on my "new purchase". 

Thanks for the information by the way!

@Jay Hinrichs 

I have a HELOC ($35,000) I plan to use as my starting capital plus an additional source of capital from my dad (Potential for $50,000). I want to do some interviewing of local credit unions, small banks, etc. to see who would share my vision and offer a cash out refi. That should allow me to pay back my capital sources (father first, then my HELOC), and rinse/repeat. In your opinion, does my plan have at least a good start? I am sure it will need tweaking or adjusting as no "plan" is ever fool-proof.

@Jason D.

Fantastic information Jason! I wrote this down so I can ask my lender some questions. Thanks for sparking the thought!

I'm buying a new primary residence for my family in the middle of July. One thing we applied for in the process along with our new home loan was a HELOC. My broker said it was completely free to do and the interest rate was sub 5%.

So I will have $35,000 in a HELOC once this loan goes through and everything is said and done. I had heard about being able to use it for literally anything I need it for, however I am going to be extremely conservative and reserve it for primary residence emergencies ONLY, or investing in something that will return me a profit allowing to pay off what I borrow.

I have a financial backer for another $50,000 in additional funds (potentially more) as of right now. My thought process was to do a BRRR strategy using the generated funds from the refinance to pay back the HELOC thereby replenishing the funds. Would this be a smart move? Or do you (any of you can please answer this) think I should consider other avenues?

My consecration will be Buy and Hold of single family residence and/or multifamily. With my end desire to be commercial acquisitions. 

Thanks for any and all input!

@Michael Volek

I completely understand how you feel. I have only been at this for near two months now and have been reading, podcast, looking at properties, talking to people, asking questions, etc. It can be a bit overwhelming I can agree. One gentlemen I had the opportunity to sit down with and pick his brain made this suggestion to me: "At some point you are just going to have to do it.... and learn from experience".

To me this makes the most sense. I am a Honda master level automotive technician. I did not go to school for this, read books, or listen to podcast to be a mechanic. I just did it. I learned along the way. There were ups, downs, bumps, hills, mountains, asking questions to those in the business forever, and all kinds of things learnt along the way, but as a result I am one of a handful of people in my district that is considered "at the top". People come to me for answers, and through my experience I can give them what they seek.

I am trying to make this somewhat of my approach to real estate investing but with a slight twist.

***Learn through experience***

That can mean either partnering with someone on a deal, being a participant, or having an individual with more experience "hold my hand" through the journey. 

@Jessie Nunley

My wife is hot and then she's cold. One minute she is all about my endeavors and then the next day she is completely the opposite. She is the typical person that resist change, she is terrified of it, it's too much of a risk in her eyes.....so as as result she has been working the same dead end job for 15 years now. 

I am hell bent on improving my family's life despite her constant fluctuation. -trust me it can be difficult.

Don't give up and keep at it is what I keep telling myself. 

"Who Dares, Wins"

@Abhinav Agarwal

Welcome to BP! You will find a wealth of information on here, and it can sometimes be overwhelming. I am also a new investor just north of you in the Indianapolis area. 

I would recommend to you that if your strategy is "buy and hold" to focus on that and steer clear of the other areas for now. Best of luck to you!

@Dan Perrott

I m not familiar with the requirements that come with being a landlord in Indianapolis (I'm new). Something I need to do some thorough reading on....

I am looking at investing in both Greenwood, and Indianapolis. I can see pros and cons to this...

Do you believe there would be any additional burdens financially speaking to land holders/properties owners because of this legislation? Thanks.

@Randy Gillespie 

Thanks for the input! I had a home inspection performed on a home I am buying in July for my family. We talked pretty extensively about rentals, buy-n-holds, etc. 

I have reached out to him, offered to buy lunch/take him to lunch/coffee, to pick his brain. Waiting to see if anything comes of it! Thanks again.