Taking out a HELOC on someone else's property
Hello!
I am planning on working with a family member to take a HELOC out on their house to fund my next BRRRR deal. I am curious if there are protections or legalities that need to be in place before I can use that money for a deal? I am just assuming that it is not as simple as take the HELOC out, they give cash to me, and I do my deal and give the cash and interest back. Thank you!
Most Popular Reply
Zach Lemaster
#2 Ask About A Real Estate Company Contributor
Professional Services
Pro Member
#2 Ask About A Real Estate Company Contributor
- Rental Property Investor
- Denver, CO
- 3,813
- Votes |
- 1,977
- Posts
Zach Lemaster
#2 Ask About A Real Estate Company Contributor
Professional Services
Pro Member
#2 Ask About A Real Estate Company Contributor
- Rental Property Investor
- Denver, CO
The owner of the property is the one to take out the HELOC. You would need a separate agreement with them to be a private lender to you regardless of where the capital comes from. I recommending hiring an attorney to draft these documents and secure the investment by the REI deal you are working on.
- Zach Lemaster
- [email protected]
- 800.311.6781
- Podcast Guest on Show How to Fund Real Estate Deals Right Now
Rent To Retirement
334 Reviews
5.0 stars