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Updated almost 10 years ago, 02/23/2015
If you were a rookie investor, what would you do with $60,000 HELOC?
I am a Physical Therapist, and I have a desire to break out from healthcare and start investing in real estate. I don't have a ton of money to tap into, but I will qualify for a $60,000 HELOC.
Do any of you gurus have advice for me?
I've always wanted to flip a property, so I may start there.
Thanks!
You could do a flip or put it into a 1st position performing note. Flipping is a job.
I would look into the local rental market. Maybe do a Fix and Rent.
#4 All Forums Contributor
- Plymouth, MI
The problem with an LOC is it has a shelf life, but it needs to be feed whenever it is used..and that "food" doesn't come cheap. What I would recommend is to either develop of find and existing system that can take these funds and use them continuously more than once...at the same time...not just in sequence.
Originally posted by @Joe Villeneuve:
The problem with an LOC is it has a shelf life, but it needs to be feed whenever it is used..and that "food" doesn't come cheap. What I would recommend is to either develop of find and existing system that can take these funds and use them continuously more than once...at the same time...not just in sequence.
Such as , say, lending it out as hard money?
Scott thanks for your Question if i was newbie in Real Estate I would connect with a Mentor first before you Jump into any Flipping of Properties or wholesale a few deals an learn the Process if you know what i mean Crawl first before you walk.
First of all, do not quit your job. So many people want to start investing with real estate and think they can quit their job the next month. If you want to start flipping homes, it will be a second job. If you want to make a career out of real estate, then there are many avenues you can go down.
But what I recommend is you take that capital and buy and hold a property. Get a nice stream of cash flow coming in to at least offset the price of the HELOC. It's the more conservative approach. It's not too risky. If you want to take a risk and start a real estate business, you can try wholesaling and flipping.
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Rob Gleason:
Originally posted by @Joe Villeneuve:
The problem with an LOC is it has a shelf life, but it needs to be feed whenever it is used..and that "food" doesn't come cheap. What I would recommend is to either develop of find and existing system that can take these funds and use them continuously more than once...at the same time...not just in sequence.
Such as , say, lending it out as hard money?
No. Too slow, too many legal issues. If I was starting out in this position, before I did that I would become a cash partner to someone else with experience. One way is to find an experienced flipper at your local REIC, get to know that person (rehabber), check out jobs done and in progress. If the rehabber is doing good work, and turning houses over with a profit, you might consider becoming the cash partner for them.
As your profit grows from repeated use, you can multiply the number of rehabbers you can partner with.