Meridian, ID · Member since 2017 · 9 posts · 5 votes
I am a newbie who's trying to get my financing in line before I start throwing out offers on deals. I am currently in the middle of the application process with Wells Fargo to get a Line of Credit against a paid off investment property. They are offering a 60% of the value of the property as a line (about $100k). I am wanting to implement the BRRR strategy in the Boise Idaho market. My question is has anyone done this before? What are the Pro's and Con's. Has anyone done a personal line of credit before and how is that different, pro's and con's? And finally, has anyone had access to both at the same time in order to get into more expensive deals? Is that possible? Or even a mix of LOC and working with a lender. Any insights would be super helpful as I work through this way of financing deals.
Also if anyone in the Boise area wants to connect, hit me up.
I am originally from Boise! Love that place. Personally getting started in investing myself I think that the HELOC isnt a bad way to go as long as the investment can support it. The cash enables you to get the property with 20% down which allows for traditional financing with banks. With the BRRR strategy I think it is a good way to get money to start out.
Make sure you have enough cash to finish the rehab on the property and that it can make money when you re fi out of it and rent it and you will be golden.
Those items are all critical.
Rate wise on the loan, its better than hard money. If you can get a personal loan, I would favor that more simply due to the fact that it won't show up on your DTI when your credit is pulled for anything else which is nice.