Use Own Equity To Invest?
Just wondering what you guys thought of using home equity loans/line of credits to invest in more real estate. We have great credit, no cash (that we want to use) and a chunk of equity. What would you do??/
I've done this to aquire one of my properties. I got the HELOC for a couple of months to pay the down payment on the property and get around PMI. I then refi'ed both properties and eliminated the HELOC.
HELOC's generally do a number on your creit though, so you don't want to keep it outstanding.
[addsig]
Yes, yes, yes. Go for it. It's called leverage- using other people's money and it is the fastest, best way to make yourself money.
I would get a line of credit on the equity in your home. It works exactly like a checking account. That way, you won't pay interest on the money until you actually draw it. I would apply for it immediately, so that the account is ready for when you find a property.
Good Luck