How We’re Using Refi’s and HELOC’s To Grow Our Portfolios

In this episode Tom and Emil share their experience with the Refis an HELOCs they are currently processing.  ---  Transcripts   Michael: Hey everybody, welcome to another episode of The Remote Real Estate Investor. My name is Michael Albaum and today I'm joined by my co hosts,   Tom: Tom Schneider   Emil: and Emil Shour.   Michael: And today we're gonna be talking about loans, how to get them trials and tribulations upon getting them and things you can do to expedite the process along the way. So let's jump into it.   Alright guys, so Tom, I'm curious now for a quick update from you, how is your insurance restructuring coming along?   Tom: So I had the call with Nick, who is a an academy member and also an insurance broker expert. And I am we had a great call, and I'm sending him my current policies right now. hopefully get that done today. And then he's going to come back with game planning some options. So it's making progress, albeit not at work speed, but I'm ahead of where I was when we recorded our last episode on my 2020 failings. So making progress.   Michael: Okay, good to hear. I will follow up with you on the next episode and see where you're at next.   Tom: Love this. Thanks. Thanks for being my accountability buddy, Michael,   Michael: That's what I do. That's what I do. Is he looking at every single one of your policies, or just only a handful?   Tom: He's looking at a handful of them. He's looking at like six of them. So well, I don't know. We'll take a look. I'll keep you updated.   Michael: All right, guys, I know that we are all in the midst of some form of loan product. And so we're going to be talking about some of the different products that are out there some of different products that we've utilized in the past, but a meal, I want to start with you since I know that you're in the midst of a cash out refinance, which is something that a lot of investors utilize along the way. So can you walk us back to why you wanted to get this? What was the kind of point and then what the results have been thus far, and what kind of ping us some questions along the way?   Tom: And you're a good person to go first, because you held us up and recording because you had some stuff to do while we were waiting on the line for you related to your refi.   Michael: So we're gonna blast you at the hotseat.   Emil: Yeah, that's right, this is very pertinent, because they basically just asked me for my firstborn child so we can get into it. Alright, so this is the second property ever bought property in Indianapolis, we bought it for 115,000, back in 2017. And right now, with interest rates being so low and inventory being so low and prices going up a bunch because people are owner occupants are driving prices up, because everyone wants to get in a home. Now, the value of this property grew, I thought to about 140,000, or 150,000. So my plan was I could probably cash out our original investment down payment, closing costs, all that stuff was around 25 K.   And I figured if values have risen to 140, 150K, I can probably pull out around 20,000 bucks, and it won't change my payment every month all that much. Because when I got the property, it was a 4.6% rate. And now at the refi, it's going to be a 3.1. So point and a half drop will offset a lot of what would be, you know, if I cashed out at the same rate, I'd be paying a lot more each month. But with that one and a half percent rate drop, my cash flow doesn't really change, my monthly payment goes up like 15 bucks or something 10, 15 bucks, and I get to pull this cash out.   So we got the appraisal back last week. And to our great surprise, usually the painful surprise, this was a good surprise, it appraised for 157,000. So we're actually gonna be able to pull out our entire original investment of 25,000 bucks. So we'll be in this property for $0. And our monthly payment i think is going to go up like 25, 30 bucks in total.   Tom: You know what, I think that is Emil. I t