Has anyone ever used part of their homes equity for the 10-20% deposit that's needed on a hard money loan to get started flipping? I was thinking about using some of my homes equity for the deposit and running costs instead of seeking out a partner on my first deal.
Hey Dan, welcome to BP and congrats on your first post!
A lot of flippers use their HELOC to fund their flips. That's how we got started as well.
Just be careful though because some hard money lenders require down payment funds to be seasoned for a couple of months, so you might need to move the money into your bank account first and let it sit. I've never seen one that will count HELOC funds as "available funds" until it hits your bank account, although some of them don't have any seasoning requirements and don't care where the funds come from as long as it's in your account.
Thanks for your input, what hard money lenders would you recommend for a first flip?