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Updated about 8 years ago on . Most recent reply

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Juan Banda
  • Edinburg, TX
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What type of loan is recommended for a Newbie with good equity?

Juan Banda
  • Edinburg, TX
Posted

I want to start investing in RE and started a home equity loan. My accountant advised me not to get a home equity loan and recommended not to put my house on the line. What type of loan should I use to start with my RE investment?

  • Juan Banda
  • Most Popular Reply

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    Kyle McCorkel
    • Rental Property Investor
    • Hummelstown, PA
    652
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    Kyle McCorkel
    • Rental Property Investor
    • Hummelstown, PA
    Replied

    Juan Banda you're accountant will also probably be working his J O B until he's 67!

    I highly recommend getting a HELOC on your personal property. Look to get it from a credit union or local bank offering high LTV. Use it as short term financing...buy below market and/or add value through rehab, then refinance, pay off the HELOC and repeat!

    Keep reserves just in case and always stay cash flow positive (I.e. Have a back up plan to pay off the loan if the real estate investment ends up not working out)

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