Home Equity Line of Credit

[Rebecca Gibbons]

Hi all!

We are ready to jump into flipping homes soon. We are looking at some possible deals now. We plan on doing a HELOC for the flip. Should we go ahead and open up that line of credit now or wait until we have a specific deal?

Thanks!

Newbie from Richmond :)

[Laura R.]

Hi Rebecca! I am also in the Richmond area. I would definitely suggest setting up a HELOC if that is how you intent to finance your properties up front. If you are making an all cash offer, the seller (bank on a repo) will want to see the proof of funds available, not just that your home has the equity.

What we have found in the Richmond market is that, if it is a good deal, there might be 11-15 offers. You will defintely have to come in with cash in those instances to compete, so having that line available will be to your advantage in making your bid viable.