Investor · Keller, TX · Member since 2019 · 76 posts · 62 votes
I have access to a HELOC for 50k tied to the prime rate which looks to be 8.25%. Im researching and looking up recommendations to make a return higher than the debt rate if possible. May be best off JV with a home flipper? What would you do?
Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
3y
@John B. If your exit strategy is long term rental consider the BRRRR strategy and get a hard money loan and use the HELOC for repairs and or conventional closing costs once your rehab is complete.
@John B. If your exit strategy is long term rental consider the BRRRR strategy and get a hard money loan and use the HELOC for repairs and or conventional closing costs once your rehab is complete.
Im even thinking of doing that in the DFW area at some point. The syndication im involved in is there as well.
Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
3y
At that interest rate you would only want to invest in a short-term deal. You also want to be very confident on the deal you are investing in. Borrowing at 8.25%, I would want to achieve a 20%+ yearly return to take on the risk.