All Forum Posts by: Tristan Colborg

Originally posted by @Doug Wright:

Seems like a high payment on a HELOC. The credit union I use only makes me pay interest on the balance used (5% adjustable) during a 10 year draw period. I have employed the same strategy when rehabbing homes as getting access to the funds is easier.

I recommend talking to the lender you plan to use to refi and make sure they dont have a requirement on cash out refi amount. Some may look at when you bought it and only give you 75-80% of purchase price depending on how long you own it before refinancing. Others will use the ARV. Just want to know what you are up against before you start.

Good luck and happy investing!

Yeah the only require payment and interest accrual on the amount used as well, but it is not an interest only loan. Does the 1% minimum patient on balance used seem high to you? What does your HELOC require for minimum payment?

Anyone have any input on this? Would love to get some experienced user feedback on this before I pull the trigger. 

@Chris Dawson @Ron Quinn

Getting ready to finalize on a property in the KCMO market, and still trying to find additional resources for contractors. I have a couple already referred to me but they are back logged with work and would love to add more to my list. Can you PM your contacts?

Hey everyone I am new to BP and to overall REI. I have purchased homes in the past, but always just as primary residences. I am ready to get started investing but have a question regarding funding deals. I currently have about $25k in liquid cash assets and about $110k in available equity in my current primary home. I would like to use a HELOC as downpayment and rehab funds on properties between $50-120k, and then maintain my $25k liquid assets as emergency/operating funds for my deals.

I have looked at getting a HELOC from Navy Federal Credit Union as they allow upto a 95% LTV on a variable rate HELOC. The terms are a 20-year draw and a 20-year repayment period, with a minimum of 1% payment on balance used ($100k borrowed + $1k monthly payment). It looks like the APR will be around 6.25%, but still can adjust monthly based off prime rate.

I feel like using the HELOC to purchase, rehab, then refinance is a good way to go but still a little nervous to be using my primary residence as collateral. Would love to get some input from other BP members if they feel that this strategy with these terms are a good way to get started.

@Matt Bell Hey Matt I am looking for an agent and property manager in Montgomery. Is CJ a member on Bigger Pockets? I tried searching for him but didn't find him. Is this who you have used to purchase your properties in AL?

This is a great story. As someone who is working on purchasing my first property this is exactly what I want to hear. Question did you save up the $33k for down payment or borrow it? I'm in the process and have about 20k saved up now.