HELOC - Is it better to use it as cash or down payment?

[Bryan Malone]

Hello all,

I'm considering taking out a HELOC to help finance my first deal in the Memphis area. Is it better to use the funds as a down payment on a conventional mortgage (potentially on a larger home that may be more expensive) or should I try to find a cheaper home that I can pay cash for (likely on a smaller home that is in not as nice an area)???

[Michael Ablan]

@Bryan Malone -  I'm always in the mindset of leveraging as much as possible.  Meaning, I'm going to borrowing/use as much money from someone else as possible to get into a deal.  This allows you to do significantly more deals which should equate into an acceleration in growth.