Home Equity Line of Credit (HELOC)
I'm interested in learning more about HELOC's!
If I have an family member who is willing to lend me money from their HELOC, how do I set up an agreement that helps them and me more secure?
I plan on using this line of credit to purchase homes cash and using the BRRRR strategy to pull the needed money out to pay said family member back.
It sounds like you have a relative with a sizable HELOC that is willing to lend to you, that can be a golden ticket. I would advise that you go to an attorney to have them write up a note and deed of trust for each house that you buy. Your relative will place the lien on the home, should anything go sideways, they can foreclose to secure their money.
Also this will be beneficial for you as well because they feel more secure and you now have a mortgage on the property, so if you decided to just pay him off and not pull any cash out, it gives you a better rate as a no cash out refinance.
I hope this helps?