All Forum Posts by: Corey Perdue

This makes sense, thanks for clearing up the air. Which brings me to my next slight concern which is banks freezing HELOC's. Then that money is completely off limits and my only option would be to do a cash out refinance, correct? And at that time, if this were to happen given the circumstances, I'd imagine rates being higher and properties not appraising for as much.

Very interesting thought! Would you mind elaborating a bit more and breaking that down piece by piece? I like where this is heading! I appreciate your input.

Good morning BP world!

I am seeking some advice from people much smarter than me, I believe I have come to the right place.

I have been in the REI world for a while(mostly SFH BRRRR investing) and was looking to make a bigger commercial investment.

Currently, my access to funds are in the form of 3 HELOCS on 3 different properties, totally roughly 300k of temporary money. I've used this cash in the past for all cash purchases and then later cash out refinancing.

I'd like to use this 300k equity in my properties as a down payment on a bigger commercial investment property instead of continuing the single family BRRRR strategy.

To go down this route I would ideally like to turn this equity into longer term fixed cash(more permanent money) instead of interest only, variable rates, HELOC's(more temporary money).

I know the obvious answer is to just do Cash Out Refinances on my properties to get them locked in on 30 year fixed mortgages. My only problem here is the 300k in mortgage payments burning a hole in my pocket before I have a property locked up, which we know in this market, it is very competitive and who knows how long it could take to find the right commercial investment.

I'm wondering if any of you have any 'out side of the box' suggestion on how to finagle this HELOC cash as a down payment without first committing to the locked in 30 year FIXED mortgages?

I do plan on this commercial property being a value add BRRRR in the sense of forcing equity, reducing expenses and raising rents.

I look forward to hearing your thoughts on this personal situation and I am beyond thankful to have such a wonderful tool at my fingertips!

Thank you in advance!

Bump. I can’t believe no one else is running into this obstacle. Anyone else have any input? It’s greatly appreciated!

 And which route are you thinking of going?

Good morning BP community!

I am looking for some advice on the capital I use for BRRRRing properties. Currently my buying power is using the equity in my properties in the form of HELOCs. This has been a very useful tool over the years. Using the capital as needed, rates have been low(obviously a variable rate), and ultimately not paying on the cash when its not being used and a good source of temporary money. 

Now, with the way things seem to be changing with market conditions and interest rates, and all the unknowns in-between, I'm considering converting my HELOC's into 30 year fixed rates. This seems to me to be a big commitment to "permanently" borrow the money on a 30 year fixed but at the same time it seems to be the smartest play in the long term.

I'd love to hear all of your feedback and thoughts on still utilizing HELOC's vs getting FIXED equity in your properties! Where do you think HELOC rates will go in the future? Also, wasn't there a HELOC freeze in the last housing crisis in 08'?

All your thoughts are greatly appreciated!

What are the key components to closing a deal fast and how do you execute?

 Keith, that woud be great. I would really like to take you up on that. Would you mind sending me your contact?

Yeah that definetly seems like the case! I have been looking and putting in offers for the last couple of month and have been striking out with the MLS. Looking for alternate deal sources at this point. How long have you been in the game?