Would a Equality Loan work with BURR
If my parents are willing to help me out with a equality loan, can I use that to BURR? But a house with the equality loan then refinance and am I able to then buy another house with it ?
@Grant Baker yes. That's exactly the process. Buy with the equity loan, fix, refinance, pay off loan to use again.
@Jason D. Perfect just wasn’t sure if that could work! Can I also use the equality loan to pay for rehab also?
@Grant Baker of course! That's the ideal situation, no money put of your pocket
@Jason D. Thanks a lot! Yeah only 19 and my parents are willing to help out. Now I don’t know much about an equality loan so are there any downsides for my parents ?
@Grant Baker there could be some credit downsides. Because you are going to be utilizing a large percentage of a large line of credit, it could affect their ability to get credit if you are maxing out that line.
- Florida, (East Central)
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@Grant Baker How long are your parents looking to let the equity loan? The only problem with you using Brrrr, is that you are not going to see 200% return. The money you make will either be given back to your parents or to buy another house. You will need to buy and rehab smartly so you not only not leave money in the home but hopefully pull more than invested out. I am no pro, but this is what I understand from reading David Greene's book on the process. Good luck.