All Forum Posts by: Phil T.

@Danielle Dickens

I didn't end up using the HELOC for any kind of real estate investment. I was close to using it on a BRRRR deal, but couldn't pull the trigger. I'm pretty conservative and couldn't stomach the risk. Based on what I found though, that's the only thing I could see using it on. Hope it helps, let me know if you have any other questions. Good luck!

@Ric Ernst The properties are owned by just me, and I'll be the only one in the LLC. I've tried speaking with 3 people at the bank, just asking them "what if" questions, and all they'll tell me is that the bank can call the note, but won't say one way or the other if that'll happen. I get it, they don't want to be on the hook if something goes differently than they said it would.

With all the people I've talked to that have said that it's possible, but they've never heard of it happening, I'm not too worried about it. I guess if for some reason it does happen, I'll just have to refi.

@Ann Shanley I do! I'll run it by her too, I just figured I'd see if anyone on here had any real world advice for me.

I own 2 duplexes in Indianapolis, which are mortgaged in my name. I want to move them into an LLC, but other than the possibility of the bank calling the note when I do it (which everyone I've talked to says never really happens), what are some things to think about? Does it cause any problems when I go to sell the properties, or anything like that?

I think moving into an LLC is the right move, but I want to make sure I've got everything taken care of on the front end before I do it.

@Mike Nuss Thanks for all of the great information, it gives me (and anyone else who was wondering the same thing) lots to think about!

@Jay Hinrichs good to know. I’ll check it out, thanks!

@Jay Hinrichs Are banks allowed to call the balance of a HELOC due or can they just freeze it?

@Todd Rasmussen I totally agree, and I do have enough to cover it, but obviously would prefer not to do that. I’m looking for some info about what a downturn would do to the cash out refi market.

I've been looking for my first BRRRR property for a couple of months, and plan on using a HELOC on my primary residence to finance the purchase and rehab. With all of the uncertainty about the economy recently (specifically the last couple of weeks), it got me thinking of how a market downturn/recession would affect a cash out refinance on a property like this. I feel like it'd be a little more risky for me since I'd be using a HELOC, and not cash for the deal. What are everyone's thoughts?

@Ross Denman Thanks! I’ll reach out to them and see what they have to say.