QOTW: How did you / are you financing your investment properties?

[Alicia Marks]

Welcome to. our newest question of the week! We know that the fed is planning to raise rates this week and possibly several more times before the end of the year. This has investors recalibrating and rerunning their deals in progress to make their best decisions.

For those still purchasing, what is your method for financing? If you are getting private lenders, it would be helpful to mention your rates and terms. That helps people newer to looking for funding have a better idea as well. Here's to hunting deals!

[Larry Turowski]

I acquire using cash and my HELOC, mostly, sometimes hard money, and rarely with long term financing up front. And then I refi into a portfolio or commercial loan after rehab.

People are always asking if they should buy rental property using their HELOC for the down payment or entire purchase, and is it "safe" to use the equity in their home to buy investment property.

HELOCs are such a great tool for investors to get started, and keep going. Few people have 10s or 100s of thousands of dollars sitting around doing nothing. Most of their savings is going to be locked up and inaccessible in places like a 401k savings plan. But lots of investors can start with the equity in their house. It is super easy to unlock and if you are not using it, it isn't sitting around doing nothing, it stays in your house and you pay no interest. It is the swiss army knife of investing, there when you need it for strong cash offers, repairs, rehab, etc, and sitting quietly in your pocket when not in use.