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Updated almost 6 years ago on . Most recent reply
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0 interest business credit cards vs HELOC for acquiring property
What are the advantages/disadvantages of a HELOC vs business credit cards with 0 interest for employing BRRRR for growing RE portfolio?
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- Real Estate Broker
- Columbus, OH
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@Steve Lawrence Sr. I don't think either are applicable if you are looking at a BRRRR strategy. The concept of BRRRR is to acquire at deep discount, force equity through renovation, and then pull that equity by placing debt on the property. Some percentage of the forced appreciation is your "cash out" to be used for another down payment.
HELOC's are typically reserved for primary residence and act as a second mortgage on your property. You simply cannot beat a HELOC. Using credit cards to buy property is not a good idea. But desperate times call for desperate measures.
- Brandon Sturgill
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