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What’s the craziest thing you have ever done to buy more Zerps?

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7 hours ago, aavkk said:

Nothing crazy here either, I don't want to have to sweat or feel the need to track the portfolio more than I already do.  My approach isn't without any risk though.  

I set up my banking differently than nearly everyone else I know.  Instead of checking, savings and a mortgage I actually refinanced into a giant HELOC in 1st lien position last year.  This functions as my checking, savings and mortgage all in one and it saves me more than $1200 per month and I gain a ton of flexibility.  Here's how.  My home appraised at 780k and I owed 340k on it and have 780 credit.  I had a 30 year fixed at 4% and refinanced into a 425k HELOC  (using only 320k of the 425k available) at 2% interest (calculated on average daily balance) for 12 months followed by Prime+0 for 9 years thereafter.  Initially, when you look at it most people's criticism of this is you are trading a fixed rate mortgage for a variable rate.  BUT... in my case I bring in X amount of money every month in income and pay out X- about 4k every month in expenses.  With a HELOC that 4k goes right against the principle.  If you get into the habit of just paying the interest only portion you'll get into a big mess but if you are cash flow positive than its WAAAY better than the traditional approach.  Every month I crush this principle by about 4k so I'm nearly interest rate immune.  Also, when I refinanced this way I had an 20k "emergency savings" account just sitting in B of A not doing anything for me.  When I refinanced that 20k was immediately put against the principle.  Even if interest rates were to go up an entire point every year for 9 years I'll still have my entire principle paid off way before then.  Even if I was only cash flow positive by about 2k I'd still be way better off than a traditional mortgage.  With a mortgage you can always make extra payments and potentially pay it off early but you can't get that money back out.  In my case I use the available credit to purchase rental properties that net cash flow in the 11-12% range.  

Sorry I know this is a lot of detail and somewhat off topic but its helped my financial situation so drastically that I felt the need to share.  For a while I wondered why this approach wasn't more popular.  Its because the refinance cost me about $600 as opposed to a mortgage refinance of about 3-5 thousand.  The mortgage industry depends on banks and brokers pushing the mortgage via commissions.  HELOC's just don't provide the same incentive.  I had to educate about 6 local banks before 3 agreed to do this and I chose the most competitive offer.  And of course they love your savings accounts so they can make a fortune off of fractional reserve lending.  Don't believe me?  Pull up a HELOC Calculator and run the numbers yourself.  You'll be shocked!  Usually, you'll need at least 25-30% equity in your home and good credit to qualify.  And the key is to be cash flow positive at the end of every month and have the discipline to use all that cash flow to punish the principle on the HELOC.  I say all this to you because technically I'm buying my XRP's on credit but you can see why this is mitigated.  

Thanks @aavkk

appreciate the detailed post. 

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Sold Ven at 20cents to buy more zerps last year. Dumbest move i made in crypto so far (at least at this time period, could be different when xrp reaches it full potential ) 

Edited by ThomTheRipplier

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Well, thought I was doing well to cash out initial investment at $3 plus in December and moved to ETH when ETH was 650 or 700. Cashed out to fiat and missed ETH at 900 a week later! Its been dollar / cost averaging over time since, generally when XRP dips below 1.0, .9, .8 etc. Buy the dips. 

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I literally sold a litter of 12 German shepherd puppies. Put every cent into XRP. Talk about the right place at the right time.

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I realized I could take out my roth IRA penalty free. I put it in XRP. I have a large fiat stash ready if we get below $.60 ... My XRP are at a low cost basis so it would not move the needle otherwise #firstworldproblems

I am building a business right now so it is a fine balance between funding my business and funding the longer term play of XRP 

Edited by xrpsailor1

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