What’s a better leveraging options for all experienced investors

[Dorian Guin]

I'm a relatively new investor, debating which strategy would work in leveraging some properties I own free and clear. But with recent changes in the markets I'd love to move in moderation. Options I'm considering is, would I be better off taking out HELOC options on the properties. Or taking out a mortgage on current properties that is already tenant occupied? Thanks in advance for all insight available.

[Jay Hinrichs]

Originally posted by @John Warren:

@Jay Hinrichs was there any warning that the debt would be frozen? I have heard about this before, and have been curious about whether this would/will happen again. I like having my HELOC partially as an extra layer of cushion.

NOPE borrowers got a letter about 45 days after the fact they usually found out when they tried to access the HELOC and were not able.

when the banks that give these loans feel their collateral is going down in value they shut them down.. read the small print in your mortgage its there..  I bailed out a lot of flippers 09 to 2011  who counted on the heloc to do their projects only to be half way through and the money was frozen..   so just something to be thinking about and for sure take a deep dive into your 20 page mortgage and read every clause thoroughly and your Note..  And it makes sense when helocs many times if they are maxed out and market retreats are now negative equity loans.