Home Equity Line of Credit

6 Replies

Hi all!

We are ready to jump into flipping homes soon. We are looking at some possible deals now. We plan on doing a HELOC for the flip. Should we go ahead and open up that line of credit now or wait until we have a specific deal?


Newbie from Richmond :)

Hi Rebecca,

I'd recommend setting up the HELOC now. That way, when you do find a great deal, you won't lose valuable time going through the loan application, approval, and closing process before you can sign up your deal. One of my favorite quotes is "You can't steal in slow-motion!"

That said, I challenge you to maintain a "lean and hungry" outlook even after you have access to these funds. This kind of money never comes cheap, so stay open to every creative opportunity to preserve it. Some sellers do need all cash, but many would happily accept terms (some money now, some later) that could minimize your out-of-pocket expense and conserve your cash. Just a thought!

Good luck!


I am not a flipper but I took out a heloc to fund a buy and hold.  My advice is to get the heloc before you have the deal.  It took a few weeks before I had the actual checks and really it took that long to fully understand everything with the multiple options, time lengths and interest rates.  

Just make sure you have plenty left over each month for the payment.  

Good luck!

Thanks! I've been thinking the same thing so it helps to hear it from the experts!

Hi Rebecca! I am also in the Richmond area. I would definitely suggest setting up a HELOC if that is how you intent to finance your properties up front. If you are making an all cash offer, the seller (bank on a repo) will want to see the proof of funds available, not just that your home has the equity.

What we have found in the Richmond market is that, if it is a good deal, there might be 11-15 offers. You will defintely have to come in with cash in those instances to compete, so having that line available will be to your advantage in making your bid viable. 

Hi Rebecca, my family lives in Richmond and I am looking there for my next investment. I agree with the others and doing a HELOC now makes sense--- especially with the current interest rates! Good Luck!!

Thanks all! My decision is made! Going to the bank today! 

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