All Forum Posts by: Alvaro Leis

I acquire using cash and my HELOC, mostly, sometimes hard money, and rarely with long term financing up front. And then I refi into a portfolio or commercial loan after rehab.

People are always asking if they should buy rental property using their HELOC for the down payment or entire purchase, and is it "safe" to use the equity in their home to buy investment property.

HELOCs are such a great tool for investors to get started, and keep going. Few people have 10s or 100s of thousands of dollars sitting around doing nothing. Most of their savings is going to be locked up and inaccessible in places like a 401k savings plan. But lots of investors can start with the equity in their house. It is super easy to unlock and if you are not using it, it isn't sitting around doing nothing, it stays in your house and you pay no interest. It is the swiss army knife of investing, there when you need it for strong cash offers, repairs, rehab, etc, and sitting quietly in your pocket when not in use.

I acquire using cash and my HELOC, mostly, sometimes hard money, and rarely with long term financing up front. And then I refi into a portfolio or commercial loan after rehab.

People are always asking if they should buy rental property using their HELOC for the down payment or entire purchase, and is it "safe" to use the equity in their home to buy investment property.

HELOCs are such a great tool for investors to get started, and keep going. Few people have 10s or 100s of thousands of dollars sitting around doing nothing. Most of their savings is going to be locked up and inaccessible in places like a 401k savings plan. But lots of investors can start with the equity in their house. It is super easy to unlock and if you are not using it, it isn't sitting around doing nothing, it stays in your house and you pay no interest. It is the swiss army knife of investing, there when you need it for strong cash offers, repairs, rehab, etc, and sitting quietly in your pocket when not in use.

The question is, has any of the Mfg. homes been de-titled and made a part of the land in the form of a deed? If not, then they are all considered personal property. If they have been de-titled and made a part of the land as a deed, then they are considered real estate. Depending on that answer, you may be able to take the loan as a commercial loan. I would check with local credit unions for financing?

I hope this helps?