Hard Money Lender vs HELOC

[Leonard M Kleuser]

My personal home is worth 90k and my partners home is worth 50k. Shouldnt we HELOC our homes to buy a BRRRR instead of a hard money lender? If I buy the BRRRR correctly (<70% ARV-repairs) wont I save a lot of money using a HELOC instead of HML and the interest they will charge? TY

[Ray Evans]

@Leonard M Kleuser Just have your bank check the rates.With the heloc you will pay 0 origination fee 0 broker fee and should def be lower interest.I just checked with Lending home and it’s $3,000 origination and 2,000 for something else to GET the loan,then you also pay contractors then a draw fee and an inspection fee while you wait to get back the money you just spent.Personally if you can do it with the Heloc it’s a lot better.It will add to your debt ,mine doesn’t hurt me at all.

Best of Luck!