Can I consider my HELOC cash for making offers?

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Can I consider my HELOC cash for making offers?

Dustin Mellor
Investor · Roseburg, OR · Member since 2016 · 48 posts · 11 votes

If I'm using a HELOC to fund an acquisition, can I consider that an all cash offer? Would likely be part actually cash in my bank account and part HELOC. The money is mine to do with as I please but it's technically credit not cash so I'm not sure.

Thanks!

Dustin 

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Marcus T.
Rental Property Investor · Houston-Galveston Tx · Member since 2016 · 15 posts · 8 votes
9y
Andrew Postell Thanks for the info. I've already opened my HELOC. Hope to find the right property soon.
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  • Inshad Kaller
    Irvine, CA · Member since 2017 · 11 posts · 10 votes
    9y
    Yes because you don't need a lender to close your just giving them all cash they don't care where it comes from.
    0Reply
  • Dustin Mellor
    OP
    Investor · Roseburg, OR · Member since 2016 · 48 posts · 11 votes
    9y
    Inshad Kaller thank you for the help!
    0Reply
  • Franco Li
    Vendor · New York, NY · Member since 2017 · 217 posts · 88 votes
    9y

    The seller doesn't really care your source of finances as long as they get the check in the end! Good luck!

    0Reply
  • Sam Alomari
    Rental Property Investor · Alexandria, VA · Member since 2016 · 75 posts · 58 votes
    9y

    Of course! I have used heloc for cash offers recently.

    0Reply
  • Dustin Mellor
    OP
    Investor · Roseburg, OR · Member since 2016 · 48 posts · 11 votes
    9y
    Thank you Franco Li and Sam Alomari m
    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    9y
    Dustin Mellor Absolutely This is how I find my acquisitions then after 6 months I refinance it to get my cash back (pay off equity line) and then repeat.
    7e investments53 Reviews
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    0Reply
  • Marcus T.
    Rental Property Investor · Houston-Galveston Tx · Member since 2016 · 15 posts · 8 votes
    9y

    @Chris Seveney

    That's great news. I'm planning to do the same but I wasn't certain of the time-frame to refi. Thanks for the info.

    0Reply
  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    9y

    @Dustin Mellor if you already have an open HELOC that you can draw against then I would say that you should feel comfortable to say your offer is a cash offer. If you don't have a HELOC and have to go apply then that would not be considered a cash offer. It could take 30-45 days to be approved for a HELOC (depending on the bank).

    Also, just in case, if you wanted to do a refinance after you buy this house using a HELOC to purchase this home would allow you to overlook any "cash out" or "delayed refinancing" restrictions. If you have any questions on this aspect feel free to Private Message me.

    @Marcus T. I would also provide you with the same advice.  If you have already completed your cash-out refinance and have the money in the bank then feel free to make your offer a cash offer.  A conventional loan cash out refinance will also take 30-45 days to complete depending on the bank.  A portfolio or Hard Money loan could be quicker but weight the pros and cons adequately. 

    Thanks!

    0Reply
  • Dustin Mellor
    OP
    Investor · Roseburg, OR · Member since 2016 · 48 posts · 11 votes
    9y

    Thank you @Andrew Postell! I do not have it yet but I'm also not making an offer at the moment. Just getting finances in order to make offers. I spoke to my bank and they were on board with my plan. 

    Dustin 

    0Reply
  • Marcus T.
    Rental Property Investor · Houston-Galveston Tx · Member since 2016 · 15 posts · 8 votes
    9y
    Andrew Postell Thanks for the info. I've already opened my HELOC. Hope to find the right property soon.
    1Reply
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