HELOC

[Armand P.]

Hi-

I want to get some thoughts on the pro/cons of a HELOC. I have a general understanding of how it works, but would it be a good idea to use a portion of it towards a down-payment or pay the house the house + rehab in full with the HELOC (if possible)

Example: Let's say I find a property and put 20% down from the HELOC and take out a Hard Money loan for 80%+ rehab costs? I realize I would have 2 loans to pay until the rehab and the property is sold. Trying to figure out the best and least riskiest way to make this work.

Thanks,

Armand 

[Isaac Blocher]

"HELOC is best used for:

Short-time deals (less than a year).

Arbitrage (short-term; e.g., lending).

Turning money fast (the “velocity of money”) for buying a property at

Buying undervalued assets for quick turns when you’re not going to

To fix the cost of money and loan constant

For down payment on other positive-leveraged assets

For appreciating assets

For long-term arbitrage

For “buy and hold” strategy"

A quote from the Book "The Wealthy Code" by George Antone