Hey y’all. I’ll try to keep this relatively simple, but I have to write a bit to get my whole situation across.
My brother in law, his friend, and I recently invested in a home together. We’re currently in the process of Llc formation.
I’m a forward thinker, so I’m already thinking about positioning for our next opportunity. I’ve read up a lot about HELOCs and how local banks will sometimes offer them to investors. We’re planning to aggressively pay down principle so we can access our equity quicker and use it for another purchase.
Here's where it gets more complicated though. We don't each have a third of the equity in this first home. Does this mean if we use the HELOC from the first home that the equity percentages will be the same for the next? I'm a minority investor right now, but I'd like to be able to increase my position in future homes. How can I increase my position in future homes if the equity will be coming from an investment I'm already involved in as a minority member? Do I need to bring in personal cash to raise my stake in the new home?
Sorry, lots of questions. I have no experience here, so I’m just trying to get a plan for moving forward. Thanks to those who respond.
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