Using Parents' HELOC to purchase additional properties

[Matt Hendrickson]

Quick question for all the bright Bigger Pocket's minds. I'm currently living in Kansas City, MO. I own 3 real estate properties at the moment. I'm trying to grow a bit faster in me goal to financial independence.

As part of that effort, I've been exploring alternate financing methods. I'm curious to know if it's possible to use a HELOC from my parent's home to purchase rental properties. I know individuals who own their own homes and have equity in their homes often use HELOC's to leverage rehabs, additional purchases, etc. I'm curious however, if it's my parents' money that they are willing to lend to me (for a small fee) could that negate my ability to qualify for a load? How would a lender see this "gift of funds" if I were to use that money as a down payment?

Thanks!

[Matthew Irish-Jones]

@Matt Hendrickson have them put it into an LLC. Your operating agreement states you get 50% of the LLC for managing the asset, and they get 50% for supplying the Capital. Or something of that nature. Either way you can use an LLC with funds from anyone to invest.