All Forum Posts by: Brian Patrick

Over the last year I’ve received about 20 unsolicited text messages (both for properties I own and ones I don’t) from real estate agents asking if I was interested in selling. This is the first time I’ve ever had this happen and I can’t imagine it being a successful prospecting Avenue, but I could be wrong. Is anyone else doing this or experiencing this? If you are texting homeowners, any success?

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Originally posted by @Marco G.:

Brian Patrick great work so far!

You can absolutely do this. I was able to do it with an online lender and made the draw a few days before closing. I was up front that this was the source and made sure it was ok.

Good luck.

Thanks for all the advice, guys. This is why I love BP. Such a supportive community!

1 Vote

Originally posted by @Jason G.:

@Brian Patrick, We've used a HELOC from our primary residence as down payments on our last two investment properties. The interest comes out to practically nothing on a monthly basis. Just know that if you have a balance after the draw period you will need to be able to afford to the principal payments at that time in addition to the interest payments. Also, consider your income and reserves. If your margines are very tight and an increase in the interest rate by several points will put you underwater, then maybe look at other ways to finance your properties.

Thanks Jason! Very helpful!

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Originally posted by @Dan Schwartz:

@Brian Patrick we haven't done this yet, but have discussed it with our mortgage broker to make sure we do it right if the opportunity arises.

There are two main steps:

1) draw on the HELOC far enough in advance so that the deposit doesn't show on the last two months' bank statements (provided that's how many statements you need to show).

2) be able to qualify for the new (investment) mortgage with the minimum payment on the HELOC included in your DTI.

So, yes, you'll likely have to qualify with all three mortgages (old, new, and LOC) counting towards your DTI. But don't ignore step #1, even though it comes with 2+ months of "wasted" interest.

Good luck!

Thanks Dan! Very helpful!

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Hello All,

My wife and I have finally made the decision to dive into our REI dreams and begin making the plans to make it all reality. We have set a goal of purchasing our first property in 2018 and are looking into different strategies. I currently own a home and was interested in the idea of using a HELOC for down payment on our first investment property. While it is an appealing option, I am unclear on if its a viable option - as it would leave me with essentially three mortgage payments (my residence, investment property, and HELOC payment). I was curious to know if any of you have used this method for a down payment or what you more seasoned investors thought of the idea. Any insight would be greatly appreciated.

Thanks guys!

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All Forum Posts by: Brian Patrick

Brian Patrick has started 3 posts and replied 7 times.

Post: No Doc Mortgage Companies? Any Good Suggestions?

Post: Is SMS prospecting becoming a new trend?

Post: Is SMS prospecting becoming a new trend?

Post: Using HELOC for Investment Property Downpayment

Post: Using HELOC for Investment Property Downpayment

Post: Using HELOC for Investment Property Downpayment

Post: Using HELOC for Investment Property Downpayment