Syndication Strategy using HELOC funds

[Brian Plajer]

Hello,

I am interested in Apartment building investing however I am 52 yo and have a Full time job in healthcare, I have access to capital via a HELOC and was contemplating investing in a couple syndication deals. My thought process is, I can earn enough interest to cover the interest only payment for the HELOC and hopefully double my investment when the syndication refinance or sells. Has anyone gone this route using their HELOC?

thanks

[Mike Dymski]

The current prime rate is 7% and headed to 8+% in the next two fed meetings. The difference between that rate and the IRR on the syndication is your net return.

Doubling your investment is an aggressive assumption in the current environment with high borrowing costs and declining values.