HELOC on Investment Property
BP Friends, what is wrong with this idea? I have a friend needing 15K for one year, and he is willing to sign over two home deeds over as collateral free and clear and both appraised at 25k each house. He can not get an HELOC because he doesn't have the credit or a steady income (W2). Here is my question:
1. Does it make sense to transfer the deeds into my name and then take out an HELOC to purchase another two properties (for me) then pay the original two properties off with another HELOC after a year so I can transfer them back to him? I have a full-time job so thought it might work this way.