Show Notes
Saving for a down payment can take years for some, but if your home is worth more than you owe on it, you might already have the money to buy your first or next rental property. Today, we’re going to show you exactly how to use it!
Welcome back to the Real Estate Rookie podcast! Join us as we walk through eight ways to turn your home equity into your next deal without putting the roof over your head at risk! You’ll learn how to choose the right option for your situation, whether you want to protect a low mortgage rate, keep your payments flexible, or get cash fast enough to beat other buyers to a deal.
Ashley explains how she uses a HELOC to make winning cash offers, and Tony shares why he treats that debt as short-term money. You’ll find out when a home equity loan makes more sense than a line of credit, and we’ll also help you determine when a cash-out refinance is worth giving up a low interest rate.
If you’ve built up equity and aren’t sure what to do with it, or you have a primary residence and want to start building your portfolio sooner, this episode will show you how to put that equity to work, safely!
In This Episode We Cover
How to use a home equity line of credit (HELOC) to make cash offers on rentals
The real difference between a home equity loan and a line of credit
Why a higher interest rate doesn’t automatically make a deal “bad”
Where to find lenders who offer lines of credit on rental properties
How Tony did his first two BRRRR deals with $0 of his own money
The equity option Ashley and Tony say to use only as a last resort
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-789.
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