HELOCS 1st LIEN as primary financing

[Charlie Nghiem]

There is a property that the owner owes 133K, and wants 191K. ARV is 238K. I want to get this house under a 1st lien HELOC. I wanted to use hard money to get the property quickly, and then get the HELOC to secure the house, but then the hard money lender would be first lien, correct? Then that would mean I would have to get a mortgage in my name to transfer the deed to me, then transfer to a 1st lien HELOC. Is there an easier way to get from point A to B?

[Charlie Nghiem]

@Scott Hollister I did a cash out refi on my own property already, which got me less than half of the asking price. Which is why I thought about using a HML to get me the rest of the way. I really don't want to use them, but just don't really know another option that is available to me (After a refinance). This deal was very complicated to work out, and there would be barely any cash flow until I could get it refinanced, which I wanted to do a month or two after purchase and rehab, but would have to pay a penalty to a HML.

But the main point of my post was acquiring a property and refinancing it to a 1st lien HELOC. So since I couldn't offer the full amount I would use the HML, then I could refi into a conventional mortgage, and 6-12 months I can refi to the HELOC. This is the only way to do it as I am understanding.

I didn't know that I had to have deals in my pocket to use a HML, so that is something I am going to have to look into if I continue to go that route. Thanks for the info.