Using HELOC as leverage

[Bienes Raices]

For those of you who use HELOCs for leverage to buy more properties, what reason do you give on the HELOC application? My application asks specifically what home improvements I'm using the HELOC for and asks for written cost estimates (to be attached).

Will they just reject my application if I tell them the truth?

[Chuck H.]

Bienes,

I have opened several HELOCs both on a primary residence and investment property. They have never asked for receipts to that level of detail.

I think they asked once and I told them I would be making a few improvements, paying of an old credit card, and just need some cash to pay property taxes and a few other bills coming up.

I always stay vague and certainly don't tell them I am about to make an all cash offer on a rundown roach infested REO.