Primary Home equity access???

[Joe Nelson]

Good morning everyone, I am curious about pulling equity out of my primary to have down payment funds on some turnkey buy and hold properties. I am looking at 3 different options to consider: 1. Traditional HELOC, 2. What seems to be a streamlined and quick answer version of a HELOC known as AVEN. This seems interesting that it can give you an answer in minutes and is essentially a Credit Card with the limit equal to the amount of your available equity. and 3. One of the shared equity programs like Unlock or Hometap, where they will give you a fixed amount of cash from your equity in exchange for a position of equity in your home. My scenario would look something like this: 380K loan balance with a 650K value, So it get me between 105-125K for up to 30% equity position to them.

The first two options will have payments with interest rates ranging from 4-10% interest only. I am guessing that would be offset with a rental property getting me 12% cash on cash returns.

The 3rd option is intriguing because there is no payment on it. I just have to share equity when refinancing or selling ( not likely selling primary for a while) so it will be deferred while I build my portfolio until when it gets reconciled when I exit and owe them their share.

I am curious if anyone here has come to these options and what they think makes the most sense when it comes to starting your REI portfolio. Also if anyone on the lending side sees the equity share with no payment as just additional assets and funds for traditional down payment/reserves or something different.

Hopefully, this is coming out making sense too, haha. I have been told that as a visionary-minded person, not everyone "gets" what I am trying to communicate.

Thanks in advance, and Happy Investing!!!