All Forum Posts by: Tyson Wade

Hey BP Fam! I've been trying to learn how to incorporate a HELOC to create passive income, and I am hoping to gain more insight (pros/cons, correct usage of HELOC, etc…) with respect to two particular strategies. Hypothetical HELOC limit of $400k. Assume I have a full time job, so time is a factor. End goal of achieving financial freedom in the shortest amount of time possible.

Strategy A:

Become an equity partner with a flipper, use the HELOC to fund the purchase and rehab, with a goal of earning myself at least 10% of what was used in net profit (ex: I used $300k, after selling the flip and paying back HELOC, I profit $30k). Put profits aside into a war chest that will be used to buy long term rentals. Repeat process 2-3x's a year (netting about $60-90k per year to use to buy long term rentals).

Strategy B:

Use HELOC as down payment plus rehab on small multifamily with the intent to BRRR, paying back HELOC for re-use. With seasoning (6-12 months), most likely BRRR 1 property per year.

Strategy C:

Anyone else have an idea for how to use this to achieve financial freedom (relatively) quickly?

Thanks in advance!

For all of you Attorney-Investors (or anyone who has any knowledge about this), I will begin my 3rd year in law school in the fall and I’m prepping myself for practice (exploring practice areas relevant to real estate investing). How have you been able to use your JD to gain a competitive advantage as an investor?

At this point, I think the only thing holding me back is the legality issue in Oklahoma. Apparently, it is illegal to enter into a purchase agreement with the seller if you yourself don’t have the “intent and ability”  to purchase the property yourself in the event you cannot find an investor. 

The “ability” area is where I struggle. My current bank account has about $0 of spendable income in it. Are there any wholesalers in OK that have had the same issue, or at least know of a legal way that I can still invest in real estate with literally no money? Or would it be best for me to wait until I graduate from school, get a job, and start making money to invest? 

I’ve thought about perhaps getting to know some private lenders to potentially back me. However, I’m not sure that a lender would want to lend thousands of dollars to a kid who has 0 experience in buying homes, investing in real estate, etc...

Cassi Justiz, thanks, that’s great advice. 

Kevin Scott, let’s make it happen! I would be interested in learning more about how that relationship works between a wholesaler and a real estate agent. Do I pay them a finder’s/referral fee for every successful buyer they bring? 

George Blower, thanks!

I am new to wholesaling, and investing in real estate in general. I've read through hundreds of blogs/forums, listened to hundreds of podcasts, talked with local investors, and now I feel that the next step is to dive in and get my hands dirty. However, I hesitate because I'm not very confident in my ability to calculate the numbers, find deals, accurately estimate repairs, and prepare an accurate ARV. I understand that practice makes perfect, but I really dont want to screw over any investors with my faulty numbers, nor do I want to contract with a seller desperate to sell, then have the contract expire because nobody wants to buy (because of my faulty numbers). Any advice on how to begin addressing these problems would be greatly appreciated!