NEED HELP WITH HELOC OPTIONS ON WHICH TO CHOOSE

[Daniel Alexander]

Should I do a HELOC that has a fixed low rate (5.875%) that doesnt have an option for interest only payments, or a Variable rate HELOC (prime 8%) that has an interest only payment option...i would like to use the funds primarily for sydnication deals or possibile BRRR if the numbers check out. What are you thoughts?

[Chris Davidson]

@Daniel Alexander you have to run the numbers, and match the time frames. If the fixed HELOC is for a shorter period than a syndication that is not going to work out well. I don't think it is wise to invest debt into syndication deals personally. If you are going to BRRR go for it, and that I'd look at the interest only option since likely would be doing a refi.

Also I'd verify if the fixed rate is a LOC or a Loan.

Best of luck!