Using my HELOC for the next deal

[Josh Edelman]

I just paid off a $70K HELOC I used to purchase my second property. I now have access to $120K back. Any tips/tricks or best practices with utilizing a HELOC out there? Looking to buy the next SFR investment (not moving into it).

Curious to hear how people use their HELOCs. Thanks! 

[Devin Peterson]

I am seeing more and more kick back from some lenders out there that are picky aobut HELOC funds. Most want to see that they are fully drawn and placed into a checking acccount for example and season for at least 60 days before intending to use for any other transaction. Yes, that means you will have to pay interest but some banks i work with who are great at DSCR products are not fans of using other institutions leverage on equity as verified capital or assets. Make sense from the top of the ladder if you think about it. Thats basically the most important i would have to say is know the HELOC requirements/rules of the particular lender you are wokring with well before you get too involved