Offer accepted, HELOC or Hard money?

[Philip Feinstein]

Hey there BP Community,

I've just received an offer acceptance on my first single family investment, I plan to BRRRR this property. I'm looking at either a HELOC or going hard money. I'm really not familiar with either….I understand what they are but I'm not 100% on how they work and which route I should go. I foresee the rehab taking roughly 4-6 months.

Any advice would be greatly appreciated!

-Phil

[Mark Boutin]

@Philip Feinstein Hey there. First, congrats on your first investment property, that's a big step! When you say HELOC, is it on your personal residence and it's already in place so you can just pull from it? A HELOC can be a great tool as it can provide you the capital needed at probably a significantly lower interest rate than a hard money lender can. By using the HELOC, you could save a lot of money in interest so definitely add that to your list of positives. Hard money lenders are not bad so don't think I'm saying that, they are just a bit more expensive. Hope this helps!