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Updated about 7 years ago,
Real estate equity to as business seed capital
We've all heard about using entrepreneurship funds to invest in real estate. Have you ever considered using real estate investing as a means to raise money for unrelated entrepreneurial ventures?
For example, imagine that you need $100k to purchase a franchise. Instead of asking the bank for a business loan, you could intentionally invest in properties with at least $100k in equity, and apply a HELOC. I imagine that this would be a safer option because you could A) have tenants help to service your debt B) have up to a 30 year payback period C) write off interest debt D) depreciate the property E) enjoy lower interest rates.
Am I missing something? This seems like it could be the way to go.