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Dennis Nikolaev
32
Votes |
84
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what to do? HELOC frozen...

Dennis Nikolaev
Posted

I just got a HELOC on my investment portfolio, so I can buy my next building with "cash".

I dumped all my operating funds in my HELOC to minimize the interest.

Now, I get a wrenching gut feeling that this HELOC can get frozen and I won't be able to buy anything new.

Please, give me an advice: what would you do?

Most Popular Reply

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4,462
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Greg Scott
  • Rental Property Investor
  • SE Michigan
6,357
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Greg Scott
  • Rental Property Investor
  • SE Michigan
Replied

Cash is king.  I'd rather have cash than less debt.

Most HELOCs have a low interest rates. To me paying a low interest rate on a HELOC is like buying insurance. I have protection against bigger risks for a nominal price.

  • Greg Scott
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