New Investor Stratagies

[Gary Wyatt]

I am just getting started in real estate investing. We have a home that has about $60 the $70K, and we really have no cash to invest into flipping houses right now, so we have to start with either wholesaling or flipping first. 

My question is, if we got a HELOC on the home to give us money to do a couple of flips to get started, should I not be worried about losing the home if the market tanked? That is the only thing that has kept me back so far, is the fact that I could lose the home. I have a feeling the market could be in for a correction soon.

Everyone tells me don’t worry about that, that whatever you do in life involves risk. They say jump on a deal if you find one, so you don't lose a it.  That doesn’t help the fact that I am still concerned. What is anyone’s thoughts on that?

Also, another option would be to sell our home, and use the equity to put toward a flip with a partner. Would that be a better option than doing a HELOC? I know we would have to turn around and purchase another home, but we would get a much smaller home which would hopefully be at least a third less of what our house payment is now.

We could also refinance. But then we would have to pay all of the fees. Not sure which way to go. I just don't want to make the wrong decision, because that would be a disaster and we would really be really going backwards.

If anyone has any feedback, that would be awesome. Thank you in advance.