Hi Friends and happy Sunday!
I have a question that I would like to ask your guys professional opinion.
I have a friend that I work with on my shift. He owns one rental property. In speaking with him about my aspirations and difficulty finding funding for my first investment, he mentions that his family member owns a home free and clear >500k. I mention the possibility of using a HELOC for a win win win situation. I get the property, split the cash flow with him, and pay her money back with interest in the refi. That is my goal and vision of success for this first rental.
My question is this, what will this deal structure look like? I will be presenting this to the lender and she is more than willing to approve as long as she understands the benefits for all.
Is it possible to make a deal happen in this structure?
Does this type of third party HELOC go through a bank?
What am I missing?
I plan to BRRRR as well as speak with lenders for these questions but you guys are always so generous and fast!