PLEX Only Community Call

The Margin Advantage (Part 2)

2025-11-19

Key topics & numbers — grounded in the call's full recording.

Key Topics

  • Same margin framework, advanced: Max Margin Utilization governs; IMR + utilization the two watch metrics.
  • "Driving the car" model: conditions (market) → dashboard (buffer) → guardrails (DSCR/DTA) → levers (margin actions).
  • Shift debt to cheapest source; keep external funding line as permanent backup ("breadcrumb" balance).
  • Multiplier / capital-growth engine; buy BORING stable ETFs; ties to Buy-Borrow-Die.

Key Numbers

  • Max util 60% (50% uncertain); good maintenance 25/30/35%, bad 75/100%. 3-person ex lines $30k/$60k/$40k.
  • Andy's run: $200k, yield 15%, rate 5%, margin $24k/$40k → DTA 48%, DSCR 25, DTA card 12%, IMR 20%, util 15%, borrow-up-to $72k.
  • Rates: Schwab 12%→10%→9%, M1 ~4.8%, HELOC 7%, whole-life 5.53%. Multiplier 1.667/1.43 (~1.5); George's 1.3.
  • Growth ex ~$396k/yr → ~$540k/yr. Yield-max fund ~36%/yr example. Buy-borrow-die ~25% cap-gains saved.

Materials open in Google Drive (academy login may be required).

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