Trying to get a HELOC

[Paul Kerr]

Hey BP members. I need some help trying to figure out how i'm going access my home equity while working for myself and starting up an LLC. A little back round on me, i purchased my first home back in 2012. I have a mortgage of 140k left and my home is tax assessed at 200k. The same year i also rolled over 50k of my pension into an IRA. In 2013 I purchased my first flip house for 18k and remodeled it while collecting unemployment. In december of 2013 I purchased my second flip home with my brother for 25k. In april 2014 my first flip home sold for 64k and now our second home is finished and on the market for 89k. Im going to apply for the HELOC but it doesn't sound promising without having "consistent income" the last 2 years. Im also a union electrician which leaves me the option to go back to work full time or do a 2 week short call. One of the requirements for the Heloc if i am employed is 2 paycheck stubs. Im wondering if they will look into my employment further than just those 2 pay stubs if i do do a 2 week short call. Any other ideas on how I could access a HELOC without having to go back to work full time, which would severely hold back my progress at building my own business and reaching the bigger goal which is of course becoming self sufficient. Any ideas or help would be greatly appreciated! Thanks fellow members!

[Will Barnard]

Just to clarify, it is not called hard money because it is "hard to find" in fact, hard money lenders are a dime a dozen.

As to your issue, getting a job now full time will not be good enough to satisfy lender requirements for a HELOC or any other institutional money source. Build up a private money network by forming relationships with those with money but no time or relationships you already have (family, friends, associates, doctor, dentist, accountant, attorney, etc.

Hard money lenders are also an option for your short term flip deals. It appears you have some capital from your flips so with enough of your own skin in the game, you should qualify, no need for a 9-5 job with them. As you build more capital and more income, you can go after some cheaper institutional money. You can also use your borrowing provisions from a 401k.