Updated almost 9 years ago on . Most recent reply
If you had $500,000....
Interested to get the BP community's responses to the question below...
If you had access to a $500,000 line of credit at a 5% interest rate, what would you do with it?
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#3 Managing Your Property Contributor
- Residential Real Estate Agent
- Irvine, CA
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#3 Managing Your Property Contributor
- Residential Real Estate Agent
- Irvine, CA
I agree with @Joe Villeneuve on if you play this right you will never need anymore funds for another deal because you can level up on each deal (come out ahead). If you use the funds for investing into flips and push the money for a few years using for rehab, purchase, and closing costs with room for extra you could double your money.
I would say you know of some areas in your local market that could be perfect for this strategy at a price point around 100-150K for purchase and rehab of 25-50K, you can parlay that invested money into double what you have and keep going. Once you start building it up you can split some money into buy and hold rentals. That would be a great idea too! While flipping you are also getting steep discounts on other properties that you can use for a rehab rent and refi (BRRR). Turn the money into more and keep up the momentum.
- Peter Mckernan
