HelOC or HML?? Need advice

[Marco Morkous]

Parents offering to take out a heloc so my first flip can be a cash transaction instead of HML. Obviously better to use cash as well as have my option or who would fix up and rehab the place. Could be cheaper to use local carpenters electricians etc than GCs that are required for rehab with HML. Kinda apprehensive to make a mistake using their money though. What do you guys think?

[Jeff Goodale]

The financial cost to borrow from HML will certainly be more but you should get quotes so you know your alternatives and then you should plan to pay your family a fair price. Realizing your family wants you to succeed but they are taking a risk. You also will have the pressure of being sure you can return their money to them, hopefully with some interest. If you have a property in mind then you should get some quotes for the work to get a better idea of the cost. You won't need to own the property yet to get some quotes. You don't want to spend money having work redone or out of code so be sure the work you pay for is going to pass inspection. The process of using a HML can be expensive and restrictive but they follow a process in order to protect their investment. You will want to be sure you have a process to only spend as needed so you don't have an exciting time of starting your business turn into a family problem.

Good Luck