New Member Introduction!
Good Morning,
New member here and I have been considering real estate for quite some time, but only recently started taking it seriously. I currently work full time in the electric utility industry, and with the considerable appreciation in the San Antonio market, I believe my current home's HELOC potential would allow my family and I the funds to get started.
I have dug into the mortgage foreclosure auction here in Bexar county and I believe this might be my way to get started, looking forward to meeting new people along the way and gain insight from BP!
Hey Chad, good to have you here and meet you!
Welcome to BiggerPockets Chad and best of luck investing!
Hi @Chad Brown, welcome to the community!
Congratulations on taking the jump!
There are two things that you should take into consideration:
1. HELOCs are generally better for short-term financing because they are ARMs and are interest-only to begin. This can cause a lot of trouble because the numbers might make sense now but will they make sense in 2 years if rates are 4% higher and you still have not paid down any principal?
2. Foreclosure auctions generally require you to have cash on hand so if your plan is to buy a property for cash and then do a cash-out refi to get your money back in 6 months and pay off the HELOC, then ignore consideration #1.
Hope this helps! Let me know if I can be of any assistance.
Thank you everyone so far, @Andrew Garcia option #2 is my plan and thank for the advice.
Welcome to BiggerPockets, Chad!
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Welcome Chad! there are so many great investors and content here on bigger pockets. I'm not a lender, but I recommend speaking to one and going over ideal loan products, there may be other options that work best for you, especially working a w2.
Quote from @Chad Brown:
Good Morning,
New member here and I have been considering real estate for quite some time, but only recently started taking it seriously. I currently work full time in the electric utility industry, and with the considerable appreciation in the San Antonio market, I believe my current home's HELOC potential would allow my family and I the funds to get started.
I have dug into the mortgage foreclosure auction here in Bexar county and I believe this might be my way to get started, looking forward to meeting new people along the way and gain insight from BP!
Welcome to BP, this is a great place to network and connect with people. If you have not already read it, I always recommend the book “Rich dad, Poor dad” by Robert T. Kiyosak to anyone who is starting out. Start listening to the BiggerPockets podcast starting at the very beginning. Start growing your network, look on Facebook/BiggerPockets for different events, find a mentor who is doing what you want to do, and get to know the local lenders/brokers.
Thank you for the warm welcoming and advice so far. I actually read "Rental Property Investing" by Brandon Turner, that led to the podcast and in turn that led me to here!
Welcome Chad! Would love to connect sometime