All Forum Posts by: Account Closed

Thank you all for the feedback. Maybe I should've been more detailed on my initial post. This all came up when I was telling my parents about my real estate investments. I currently own real estate investments, two of which were bought by taking out a second mortgage on my primary residence to use as a down payment. My parents asked me if the same could be done with their home to invest in rental properties. This is when the question came up whether it'd be worth it taking money out of the home to invest. My parent's thought would be if I (on their behalf) could take the equity out of the home to invest into real estate so they could use the additional cash flow during their retirement. So to restate my question a little clearer, would them taking cash out of their home be better than a loan or would it be the same? 

@Andrew S. Once again, I appreciate your feedback but I don't appreciate the negative assumptions you're making, first that I "don't seem concerned about the risk to my parents" and second that I would not compensate them as financers of the deal and would "take advantage of them".

Also @Ana Marie B. and @Mark Durham I appreciate your real life examples.  Although I feel that comparing using money to overly invest in a primary residence is quite different than strategically placing the money in a real estate investment.  I feel as though you are comparing apples to oranges.

@Bill F.

Hi Bill, the thought was to access the large amount of untapped equity to use as a down payment on a much larger deal. A sum of capital that would otherwise take a long time to earn. Similar to taking out a second mortgage on a primary residence to invest.

@Andrew S.

How would you compare this to taking out a second mortgage on a primary residence to fund a real estate deal? Essentially it carries the same risk (losing your home if you can’t make the payment) right?

@Mark Durham

I appreciate your honest feedback. How would you compare this to taking out a second mortgage on a primary residence to fund a real estate deal? Essentially it carries the same risk (losing your home if you can’t make the payment) right?

@Mark Durham

Thanks for your response, it sounds like the CONS would be no worse than any other form of funding a real estate deal.

@Theresa Harris

The goal would be to get on the title and then take the loan out in my name, so it would be my responsibility. I would use it to invest in real estate similar to taking out a second mortgage or a HELOC. I see it as a huge source of untapped potential.

Just wondering if there are more CONS to this plan in relation to any other form of funding a real estate investment.

My parents have had their house paid off for over 15+ years already. The house is worth about $250k. Is it a good idea to finance the house to tap into the equity? (using the money to invest in more real estate).

My concern is that it will start a monthly payment to repay back the loan after not have to pay a mortgage for over 15+ years. I’m trying to understand all pros and cons, would love any insight!!

Hi @Rochelle Duong!

I’m in the same boat at you, just paid off my student loans, living in SoCal and wanting to invest but get the most bang for my buck.

I’m currently building a team in an outside market. I’ve met people through bigger pockets who have been so helpful. Being an OOS investor I spend so much time on Zillow, Realtor, and especially google so I can virtually “walk” the streets.

Talking to lenders is good, I have an amazing broker that I use and he gets me in touch with the best lenders for the deals, he has great resources.

[Request to Contact Removed by Moderators] I’m hoping to make my first deal by the end of the month!

Hey @Justin Gottuso !

1. RN at Providence Health

2. Sunny SoCal, Los Angeles (more specifically the SFV)

3. I am looking to make my first deal! Looking at out of state due to the high prices here in California

4. I'm looking to Buy and Hold multi family properties.

Looking to make my first real estate investment purchase long distance - what is the best way to determine rehab costs?  Experienced investors - how do you navigate the logistics and timing of determining the rehab costs?  How can you begin to evaluate deals without this piece of information?