Should I use my Home's equity to get started.

[David Muscovalley]

I have about 40K in equity in my home that I was planning on pulling out to get started in investing any suggestions?

[Matthew Nicklin]

@David Muscovalley Yep only you can know if you want to take that risk. Everyone and every investor has their own risk tolerance. Just keep in mind timeline and repayment strategy. Are you going to use a HELOC which is a line of credit and most likely is variable rate(May have an option to go fixed at a higher rate) or are you going to take out a new 1st with cash out to go fixed original but not have the line option.

I am often reminded of Sam Zell's great quote "If you've got a big downside and a small upside, run the other way. If you've got a big upside and a small downside, do the deal. Always make sure you're getting paid for the risk you take, and never risk what you cannot afford to lose. Keep it simple. A scenario that takes four steps instead of one means there are three additional opportunities to fail." -Sam Zell