Hello everyone I'm new here in BP I'm a general contractor transitioning into becoming an investor so new in a lot of subjects, I live in Oklahoma, and want to hear everyone's opinions, advices and experiences related to this subject. I'm trying to decide between getting a Home-equaty Loan or Refinance a property that I have to raise money to use it in a next investment. Also I will appreciate if everyone who leave a comment will talk numbers in the difference between these 2 options.
Thanks in advance.
Depends on the goals with said investment. Flip, buy and hold, etc? Gotta narrow down your strategy before you can figure out the financing that's the best fit.
- Refinance your rentals and reuse the cash.
- Add a Business HELOC "Line of Credit" on the extra equity.
- Add a Business HELOC "Line of Credit" on your personal residence.
Use the lines of credit to buy houses and then refi into a longer-term commercial loan. It's the Brrrrr...
Hi @Chris Mason narrowing down an strategy is exactly what I'm trying to do that's why I need to gain more knowledge about this subject, I'm a very analytical person and just like playing chess I like to analyze all the scenarios, always thinking 1,2,3,4,5 steps ahead then set up all my pieces in place and then go for the checkmate (In this case landing a good deal, lowering my risks and maximizing the profit or cash on cash ROI).
Maybe I need to be more specific in my question, lets say I'm going for the BRRRR strategy how different it will be from getting an Home-equity Loan instead of Refinance, talking about time, hassle and amount of capital that I can get back.
Thanks @Ron Harris I did a little of research and though about getting a HELOC too maybe I should add that option into the comparison too.
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