I also got a heloc on one property that appreciated (my former primary home). I used it for a reno and was able to pay it off when I refinanced, which was great. Now I used it for the downpayment on another property and feel overleveraged while trying to stabilize the new property- now I will have to pay it down before I can use it again. I felt much more comfortable having it for strategic reserves/renovation fund. So my point is a heloc is a very powerful tool but have a strategic game plan to how you will use it and pay it off.
100% agree. Thanks for sharing your story. To me a HELOC is best a short term tool. Get in. Get out. Either refi or sell to pay it off. Leaving in property often creates negative cash flow until its paid back. And there is risk of it being called due in a big economic downturn like 2008.
The interest rate for a HELOC was similar to conventional mortgage rates, at this time (March 2024). Being able to make an "all cash offer" made us stand out against the competition and lead to a quick and easy close. 9 weeks later when we pulled the cash out and paid off our HELOC, then we utilized a conventional mortgage for the long term. The HELOC was just a short term solution.
Speaking as a patent attorney and a real estate investor myself, she made the right decision to go into real estate investing instead of spending thousands and thousands of dollars on a patent application for her invention. Very few patented inventions are ever successfully commercialized.
Man I’m doing my first! Watching. Your vids got a heloc for 90k Made an offer on an off market got accepted wrote the contract and got it approved by the bank Friday
Good question. I can confirm with my husband- he did all the initial paperwork. I am guessing they verified his income, but it is mostly about the equity in your home. I will ask him and circle back! (whether he remembers or knows from his own banking job!)
Where I got stuck trying this was my inability to get a refinance loan since I was self employed. I got stuck with my heloc and couldn't do any more deals
My jaw drops at these home prices… I have two 3 bedroom house with attached garages and I can only get $250,000 combined… I can rent them for maybe as high as $800.00 each
I also got a heloc on one property that appreciated (my former primary home). I used it for a reno and was able to pay it off when I refinanced, which was great. Now I used it for the downpayment on another property and feel overleveraged while trying to stabilize the new property- now I will have to pay it down before I can use it again. I felt much more comfortable having it for strategic reserves/renovation fund. So my point is a heloc is a very powerful tool but have a strategic game plan to how you will use it and pay it off.
100% agree. Thanks for sharing your story.
To me a HELOC is best a short term tool. Get in. Get out. Either refi or sell to pay it off.
Leaving in property often creates negative cash flow until its paid back. And there is risk of it being called due in a big economic downturn like 2008.
Sir, HELOC is at 8%, which is 1.5% more than normal mortgage. Why should I take HELOC and pay a lot more. Is it not counter intuitive?
The interest rate for a HELOC was similar to conventional mortgage rates, at this time (March 2024).
Being able to make an "all cash offer" made us stand out against the competition and lead to a quick and easy close.
9 weeks later when we pulled the cash out and paid off our HELOC, then we utilized a conventional mortgage for the long term.
The HELOC was just a short term solution.
Speaking as a patent attorney and a real estate investor myself, she made the right decision to go into real estate investing instead of spending thousands and thousands of dollars on a patent application for her invention. Very few patented inventions are ever successfully commercialized.
What an interesting mix of expertise you have! Thanks for the feedback.
I am very happy we went the REI route vs. the patent! What a great person to validate that decision with your background! Thank you :)
Haha, I would NEVER A rent to an attorney
Man I’m doing my first! Watching. Your vids got a heloc for 90k
Made an offer on an off market got accepted wrote the contract and got it approved by the bank Friday
This house was perfect compering to the houses I’m buying 😂
I love a good home remodel :)
Great video. Very helpful and informative. Thanks for putting out this content
Very helpful Thank you for sharing this
can you eligible for HELOC without W2 job?
Good question. I can confirm with my husband- he did all the initial paperwork. I am guessing they verified his income, but it is mostly about the equity in your home. I will ask him and circle back! (whether he remembers or knows from his own banking job!)
great show, thank you
Another great video coach
Love this content 💪
Where I got stuck trying this was my inability to get a refinance loan since I was self employed. I got stuck with my heloc and couldn't do any more deals
As a self-employed person, I get it! Have you tried a DSCR loan? They look at income of property and not your personal income
No I just sold it and paid capital gains
Best rental property is turnkey multi-family
What lender did you use? I’ve been told by everyone I’ve contacted that I have to wait for the 6 month seasoning.
My jaw drops at these home prices… I have two 3 bedroom house with attached garages and I can only get $250,000 combined… I can rent them for maybe as high as $800.00 each
I hear you. Chicago suburbs here... prices (and taxes) are wild 😕
I’m trying to do the same but with a LMA against my investment portfolio.
Good idea!