**Different ways to invest in apartments?

[John James]

Hello,

What are some different methods to PASSIVELY invest in apartments if I do not have a huge amount of cash? Can somebody explain some options with HELOC, credit cards, or a personal loan?

Yes, I know credit cards are not ideal. Yes I know a bank will not loan me money to invest in an apartment if thats what I told them I was using it for. If I can find a low rate on a personal loan or credit card and earn 10%+ percent on an investment, then I will take that spread. How would somebody use a credit card to invest when the only way to get cash would be from a cash advance and those rates are sky high? 

Please do not share your thoughts on if this is bad idea and please just try and help with the actual question. I would appreciate it, thanks!!!

[Evan Polaski]

@John James, you have to remember too that the 10% return is not guaranteed and depending on the sponsor and product, typically backloaded (read: comes in the form of sale or refi several years down the road).  If you were going to borrow, to invest, I would be looking at debt funds/offerings where you tend to have some more protections and consistent cashflow.  

HELOCs could work, as they are lower interest, but again, if say a worldwide pandemic comes and effects collections, you would owe the interest on the HELOC, whether or not your sponsor is making the distributions.

This isn't for apartments, and would not be for the faint of heart, but MAYBE (I wouldn't personally) taking out a high credit limit, 0% intro APR credit card with 0% interest on cash advances, to invest in a flip (but as a passive investor) could be a way to start making money in real estate, passively, while using your good credit. I personally feel like this is too much risk, but could be a possibility.