HELOC vs. Hard Money for BRRRR

[Jenni Salter]

Hi everyone, I am getting ready to purchase my first BRRRR property. I have $250K in HELOC money. I've received advice that it always makes sense to use private/hard money over HELOC to buy properties. I am not really understanding why it's better though. I was told by my mentor to use the HELOC money as seed money to have in case I need it. What are your thoughts? I wanted to get various opinions before deciding the way to go about this. What are benefits of hard money? Maybe I'm missing something.

[Jenni Salter]

Quote from @Corby Goade:

A HELOC is 100% the way to go if you can do it. HELOCS are always the cheapest form of flexible cash you can get. People who are anti-HELOC for BRRRRs usually are concerned about the liens against their personal home and that keeps them up at night. It's just a personal preference, but that's how I do it.

That's my thinking. I can save thousands in interest and closing costs using HELOC money. Yes, it's risk borrowing from my personal home but there's some kind of risk involved with every form of borrowing. Thank you!