All Forum Posts by: Van Edward

I found out that the Credit Union I bank with offers 95% LTV HELOCs. I am taking this route to avoid losing my 2.2% interest rate while still accessing my cash. My application is currently processing and should be able to be approved. I'm just looking for the groups point of view on this idea. Interest rate on the HELOC is somewhere in the 4s. My idea is to use the money purchase a property for well over the 20% down threshold, refinance, pay back the HELOC, rinse and repeat with that with 2 or three properties. That or pool the money with a partner and purchase something larger. I would love to hear yalls thoughts on this.

I found out that the Credit Union I bank with offers 95% LTV HELOCs. I am taking this route to avoid losing my 2.2% interest rate while still accessing my cash. My application is currently processing and should be able to be approved. I'm just looking for the groups point of view on this idea. Interest rate on the HELOC is somewhere in the 4s. My idea is to use the money purchase a property for well over the 20% down threshold, refinance, pay back the HELOC, rinse and repeat with that with 2 or three properties. That or pool the money with a partner and purchase something larger. I would love to hear yalls thoughts on this.

I have used HELOC in the past to purchase rentals with. It is a great way to access cash that is tied up in your current home. Just read the terms as far as how long it is open for as far as paying back the loan, and have a backup plan if you are not able to refi right away. I always make sure it cash flows so if you cannot refi right away you can start paying back the loan with the cash flow until you are able to.

 Hello Van how you doing,. I'm new here just started on this platform I have a funding company and if you are starting off in the real estate world I have a partner program you may be interested in send me a message so I can contact you 

thank you 

@Van Edward
Here is a chart of median home prices since 1954.  How many dips in nominal value (not inflation adjusted) do you count?   I see only one.

@Van Edward If you have a decent amount of equity, you can do a HELOC or Home Equity Loan. You can use these funds to renovate the property as needed and you could also refinance after the renovation is complete if you wanted to but that could be a slightly more difficult decision with rates going up currently.

In terms of qualifying on the loan, just make sure to maintain your good credit and avoid applying for new credit cards or any new accounts that would ding your credit around the time you apply for a HELOC, Home Equity Loan, etc. Also, you definitely want to shop around on these products since each will have different rates, fees, etc.

As to whether a HELOC is the safest bet, that can't be said for certain. The safest route would be to use cash you already have on hand if possible. If that isn't an option, the HELOC is a great option but keep in mind that HELOCs typically have variable rates so be sure that you could afford the monthly payment on whatever you draw from the HELOC while the renovation is taking place. There are some great resources on YouTube that talk about how to use a HELOC for home renovations. There will always be risk involved regardless which path you choose, but just be sure to research thoroughly, ask questions to any prospective lenders, and be sure you understand the process, costs, and risks fully.

My wife and I are looking to buy another property in Denver, yes, hot market and all. We will do some  cosmetic repairs to our current home and focus more effort on any rehab that would upgrade the new property. The biggest update we will consider for our existing property is adding a room by way of a new egress window. That would bring additional cash flow. But other things, like opening the kitchen up into the dining area would not fit into our game plan, so we are passing on those for now. I may think differently about it after gaining more experience, but it seems like the best option for us.

Good luck staying out of that doghouse @Vincent R.!

If you have enough equity into your home you can do HELOC, which probably would be the cheapest way. Credit score matters because the higher your credit- better the interest rate.

Would the renovation bring any additional cash flow? I would lean towards a second house purchase, especially in LA. Yes rates will likely continue to go up, and possibly flatten out the market, but like Greg said above we are severely lacking in supply. Over the long term appreciation and equity grow wealth, so add another to your portfolio,  personally I am currently still buying in the Denver area. 

As Mr. Greene likes to say, the most likely outcome is that by the time the next housing crash happens, the dip prices will still be higher than the prices today (inflation aside). I would talk about supply and demand but that's been beat to death in BP recently. ADUs are hot in LA, have you tried doing an analysis on that?