Welcome to the Road to Six Figures Challenge Day 6!
The Six Figures Challenge is a challenge created by entrepreneur, TraVal Shanklin, to document his journey of earning six figures from scratch through business ownership.
The Importance of Mentorship
Last night one of the guys I consider a mentor to me was dropping some jewels. We were able to ask him questions about his life and tips on how to become successful. The mentor is 25 purchasing a house, has an almost paid of new car, and is engaged.
We asked him about financing a new/used car without getting screwed. His response was to finance through a credit union. When the person is around my age and successful, I listen to their advice.
Here are some tips from him. Dealership financing will most likely screw you. The dealership offers you 4%, while the credit union would have approved you for 2%. Since they are the middle man, their interest rates will almost always be higher.
Furthermore, by going through a credit union you are building a relationship. This relationship can be great for if you decide to finance a house. He explained to us about how tedious a house purchase can be, but says it’s worth it.
Home Equity Loans
One of the benefits is something called home equity loans. My family never talked about important topics like this. Getting lower interest rates on big purchases can make a big difference.
With home equity loans, you are pretty much taking out the equity you have in your house. For example, let’s say you have purchased a house, the value of your house goes up by $20,000 and you have paid $15,000 in mortgage payments. Now, you have $35,000 of equity in your house. You have a car note of $400 per month for 60 months.
You could maybe keep paying $400 per month or you could take out a home equity loan for the $24,000 and pay off your car. Why would you do that? Well, if you use the home equity loan to pay off your car, your monthly house note would only increase by $67 per month. This means you are saving $333 per month. Again, this is why mentors are important. They open your eyes to things you may have never even considered.
Update on Shanklin Technology
My client and I are finishing up the paperwork, going back on forth. Hope to get everything signed by next week.
Thanks for reading the Road to Six Figures Challenge Day 6.