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Lindsey Pinkham's profile image
Lindsey Pinkham
Pro Member
  • Member since Apr 17, 2023

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17
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Lindsey Pinkham's profile image
Lindsey Pinkham
Pro Member
  • Member since Apr 17, 2023
Lindsey Pinkham
Pro Member
12
Votes |
17
Posts

Home Equity Investment Loan.. good idea?

Lindsey Pinkham
Pro Member
Posted Sep 7 2023, 05:39

Hi everyone! 

Has anyone heard or even used a home equity investment loan? 

From what I’m reading it basically looks like a 10 year interest free loan against the equity you have in your home. 

I was just curious if anyone knows more about it? I’m wanting to do it to acquire my next rental property (which is a heavy cash flow property). 

Please let me know anything y’all know or any advice you have! Thank you so much in advance!! 

Mason Weiss's profile image
  • Realtor
  • from Phoenix, AZ
  • Member since Aug 14, 2021

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300
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Mason Weiss's profile image
  • Realtor
  • from Phoenix, AZ
  • Member since Aug 14, 2021
Mason Weiss
  • Realtor
  • Phoenix, AZ
153
Votes |
300
Posts
Mason Weiss
  • Realtor
  • Phoenix, AZ
Replied Sep 7 2023, 09:19

I haven't seen this loan used personally, but I know it all depends on the terms. If it makes sense with the return you receive on a future investment then it is a viable option to grow your portfolio. 

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Ryan Muska's profile image
  • Lender
  • from Saddle Brook, NJ
  • Member since May 30, 2023

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353
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195
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Ryan Muska's profile image
  • Lender
  • from Saddle Brook, NJ
  • Member since May 30, 2023
Ryan Muska
  • Lender
  • Saddle Brook, NJ
195
Votes |
353
Posts
Ryan Muska
  • Lender
  • Saddle Brook, NJ
Replied Sep 7 2023, 09:22

I've done multiple HELOCs on investment loans and there are definitely options that come with an interest-free period.

As far as 10 years, I have not heard of those, but honestly would not be surprised if they exist. But be wary of the upfront fees they may charge you.

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Andrew McGuire's profile image
  • Investor
  • from Chandler, AZ
  • Member since Jan 13, 2022

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152
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Andrew McGuire's profile image
  • Investor
  • from Chandler, AZ
  • Member since Jan 13, 2022
Andrew McGuire
  • Investor
  • Chandler, AZ
114
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152
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Andrew McGuire
  • Investor
  • Chandler, AZ
Replied Oct 26 2023, 12:08

Hard no, my understanding is they share in the appreciation and have some clause where they undervalue your home on front end. What's the point in investing.