All Forum Posts by: Billy Seol

I'm about to purchase my first investment property fully funded with a HELOC. When I purchased my primary residence I had wired the required funds to an escrow account, but since this is my first time using a HELOC i'm not really sure how I can send the money to escrow. Do I mail them a check? or do I get the money to my banking account first and then wire that? Does anyone have experience in this area?

@Matthew Crivelli

Thanks for the clarification!

@Andrew Postell

I haven't learned of that concept yet, so thanks. Let me see if I understood your message correctly.
For example if I buy a 3br property for 10k, and I rehab + do some ADU with 5k, and the market value of a well furnished 3br + ADU is about 20k, then even if I pay 15k with full cash (provided via HELOC) that's still about 75% of ARV so I should be happy? This ARV math has nothing to do with down payments vs financing, right?

I don't fully understand the statement "If you can BUY and REHAB at 75%....then all sorts of loans can help you purchase a property with 0% down." From my example above, does that mean if I can prove to a lender that I can fix this 10k property up to 20k with 5k of work they'll give me 0% down loan? Could you clarify that part?

@Matthew Crivelli

Thanks for the answer! So if I'm understanding correctly as long as the math works out I can 100% put down with HELOC or mix a HELOC with financing, right? Is there a relative pro/con between putting 100% down with HELOC vs. financing? My hunch is that putting 100% down with HELOC would be treated like a cash offer to the seller.

Hello! I've been reading up on the BP core books. I read "Investing in real estate with no and low money down" first, and then am reading BRRRR now. I thought I understood the process after reading the first book but after reading BRRRR I feel like I need to clarify my understanding.

I have a primary residence home right now, that I got a HELOC out of. I was going to:
1. Find an investment property to purchase
2. Use the heloc as a down payment (10~20%)
3. Finance the rest from a lender
4. Rehab (using heloc)
5. Rent
6. Refinance after the forced appreciation on the investment property, and use that money for the next purchase & pay off the initial down payment from Step 2

However, the BRRRR book said I needed to make the purchase with cash. Is it essential that I use cash for the initial purchase? Or is it that I need to use the HELOC completely to purchase the property, basically put 100% down with the HELOC & the rehab? As this is my first purchase I'd like to make sure that I put the "first button on the shirt correctly", so to speak. :)

Thank you for your answer!

Hello,

I'm a new investor trying to get the investment process started. I'm looking to finance via a HELOC on my home, which is in California.

However I am planning to invest out of state, and was wondering if there are any restrictions/advantages to having the lender be in my home or investment property's state.

Thank you!