Flipping Homes using a heloc

[Elias Fahel]

Hi,I am a remodeling contractor in the northern virginia area.I have been wanting to flip properties for a few years now and been thinking of using a Heloc on my personal property .I would like to get some feed back on your thoughts on this process ,as well as the pros and cons.I have been a contractor for 30 years and been thinking of shifting over into the home flipping business.I also hold a realtors license as well.Thanks for your time in advance

[Caleb Rigby]

@Stephanie P., I have a HELOC and didn't know that a lender could 'shut down your HELOC' if they so desired - is that really a thing? I also disagree that you should pay off your personal home first. I wouldn't have been able to get into flipping if I didn't have that equity to use. We've flipped 7 houses in 2017 and using a HELOC was our launch pad. I don't think you should be overleveraged at any point, but I also don't think you should pay off your mortgage and let that equity go unused either.

Good luck @Elias Fahel!