Real estate equity to as business seed capital

[Olufolajimi Ige]

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.

[Account Closed]

@Olufolajimi Ige this is a great idea. Maybe it would make sense to buy a shopping center and move your business into the center. That way you are paying yourself rent. Then you could use the equity for Seed Capital. You probably would also increase the equity because you are a new tenant.