HELOC?

[Gerardo Varela]

I'm new to BP and wanted to see if pulling cash out of my home is good idea to begin investor path.

[Tim Jones]

@Gerardo Varela

Welcome to BP! 

Last year I contacted my credit union and got a HELOC out for investing. It cost me a grand total of $250 and included an appraisal. I recommend that you begin the process now so that you have it ready when the time to strike presents itself. It should fund into a checking account and can sit there unused. You can use a check for your (EMD) Earnest Money Deposit and then another one for your down payment.

You probably already know, but you'll be allowed to take up to 80% LTV in most cases. This means that if your house is worth 100K and you have a mortgage of 45k, then the bank will approve you for 35k. 45 + 35 = 80. 80/100 = 80%

We have the HELOC and are also saving as much cash as possible. I highly recommend reading, the Richest Man in Babylon. Disponible en espanol ;) I'm of the mindset that a market correction is coming and I want to be correctly positioned to take advantage of it. I am also currently making offers, but at a price that protects me from any such correction.

Let me know if you ever need anything,

TJ