Large sum of money through a heloc newbie investor

[John Paul]

Been posting quite a lot here lately and I'm more confused than ever , I have access to a large sum of money through HELOC and was ready to start fixing and flipping but recently went to a real estate convention and was kind of talked out of it . I've read every book under the sun from investing in foreclosures to a pace morbys book and this is 5 years in the making . I'm ready to take the leap but really don't know where to start

[Travis Biziorek]

Hey John,

My HELOC was a huge benefit when I started aggressively building my portfolio.

It's a great tool as long as you know how to use it properly. Two things I always tell people:

1) Be sure you can COMFORTABLY service the debt. If you can't, you really have no business drawing on it.

2) Have a plan to pay it back.

The plan to pay it back is usually the tougher part. Basically, you want to make sure you're doing value-add investing (like a BRRRR).

If you're just drawing on the HELOC to slap 25% down on rentals that's setting yourself up for failure.