has anybody tries HEI or home equity investing loan
I've been trying to get a HELOC on my investment property in Providence. And I have had a few offers with reasonable rates. But I was recently offered a home equity investment loan. has anybody used this type of product? I don't know the exact terms yet, but I do know that they lend you from the equity of the property with some points being charged and and NO monthly payments and they will get a % of the equity when you resell or refinance.
@Richard Moreno
Yes I am familiar with this type of equity sharing program. Be aware if you borrow say 30% you are giving up 50% if the equity. It’s no a 1-1 swap. Note numbers were illustrative and speak to lender but my point being not an even swap.
I heard about these too. I live in Los Angeles, and as many know, properties appreciate like no one's business so the idea of giving up equity as a percentage of my home's value seems like a bad deal, especially if I plan on using said equity to fund future deals.