How can you use your home’s equity to buy a real estate investment? That’s the first question I’m answering on today’s Q&A episode! Every Monday, I’m tackling your questions about all things real estate.
On this episode of Investing in Real Estate, you’ll hear my answers to three thoughtful listener questions. Today’s topics range from HELOCs, refinancing, and selling notes. Don’t miss episode 881!
On this episode you’ll learn:
- How to use a HELOC on your primary residence to grow your portfolio.
- When to refinance your rental property.
- How to find buyers for notes.
- And more!
How to Use a HELOC on Your Primary Residence to Grow Your Portfolio
When you get approved for a HELOC, the bank gives you a revolving line of credit that begins with a zero balance, much like a credit card. But with a home equity line of credit, you’ll be able to access checks and a debit card. Then you can use those funds as a down payment on a cash-flowing rental property, and you can use your tenant’s rental income to pay down the HELOC balance. As always, make sure your numbers make sense.
When to Refinance Your Rental Property
After purchasing an investment property, you might be eager to quickly refinance and grow your portfolio. Realistically, it should take you a few years to pay down the principal balance on your first property if you’re solely using rental income.
How to Find Buyers for Notes
There are a few different ways to sell notes. I’ve used companies like Note Buyers Group. This is a good option if you have a large package of notes. For smaller deals, consider searching note buyers on LinkedIn.
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Episode Resources
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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