Taking The Leap Into Commercial (Funds)

[Corey Perdue]

Good morning BP world!

I am seeking some advice from people much smarter than me, I believe I have come to the right place.

I have been in the REI world for a while(mostly SFH BRRRR investing) and was looking to make a bigger commercial investment.

Currently, my access to funds are in the form of 3 HELOCS on 3 different properties, totally roughly 300k of temporary money. I've used this cash in the past for all cash purchases and then later cash out refinancing.

I'd like to use this 300k equity in my properties as a down payment on a bigger commercial investment property instead of continuing the single family BRRRR strategy.

To go down this route I would ideally like to turn this equity into longer term fixed cash(more permanent money) instead of interest only, variable rates, HELOC's(more temporary money).

I know the obvious answer is to just do Cash Out Refinances on my properties to get them locked in on 30 year fixed mortgages. My only problem here is the 300k in mortgage payments burning a hole in my pocket before I have a property locked up, which we know in this market, it is very competitive and who knows how long it could take to find the right commercial investment.

I'm wondering if any of you have any 'out side of the box' suggestion on how to finagle this HELOC cash as a down payment without first committing to the locked in 30 year FIXED mortgages?

I do plan on this commercial property being a value add BRRRR in the sense of forcing equity, reducing expenses and raising rents.

I look forward to hearing your thoughts on this personal situation and I am beyond thankful to have such a wonderful tool at my fingertips!

Thank you in advance!

[Matthew Crivelli]

You can use a HELOC as a down payment with hard money. Get into the property with a bridge and then refi.