Partner with parents using their HELOC

[David Sohn]

1. Is it possible to get a property using my parents HELOC (with their consent of course)? And if so, I'm assuming I could make them my partner as if they were any other investor right?

2. Since this will be my first property, would you recommend me going this route? Because I will have to pay two debts, the conventional loan and the HELOC.

3. To go around with the problem from question 2 I was thinking about getting a property with cosmetic issues and fixing it up. Then after holding it for ~6 months I'll refinance it to pay off the HELOC first to get away with one of the two debts from this deal. Am I logically thinking this correctly or missing a few steps?

Thank you!

[Noah Thacher]

@David Sohn, I love the creative thinking!

1. I spoke with a lender friend here in Dallas and he said that there should be no issue with your parents gifting you funds from a HELOC. You could then get a conventional loan and potentially something that lumps in some renovations.

2. If your parents were up for it, you could also get them to co-sign on the deal and would probably improve your buying power. The nice thing about working with family is that they tend to be more forgiving and flexible than other potential partners.

3. I think this sounds like a great plan! If your parents are on board then you can build wealth from their equity w/out asking them for any liquid wealth.

Let me know if you would like me to connect you with my lender!