Updated about 3 years ago on . Most recent reply
Taking out a HELOC on someone else's property
Hello!
I am planning on working with a family member to take a HELOC out on their house to fund my next BRRRR deal. I am curious if there are protections or legalities that need to be in place before I can use that money for a deal? I am just assuming that it is not as simple as take the HELOC out, they give cash to me, and I do my deal and give the cash and interest back. Thank you!
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- Rental Property Investor
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#2 Ask About A Real Estate Company Contributor
- Rental Property Investor
- Denver, CO
The owner of the property is the one to take out the HELOC. You would need a separate agreement with them to be a private lender to you regardless of where the capital comes from. I recommending hiring an attorney to draft these documents and secure the investment by the REI deal you are working on.
- Zach Lemaster
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