Home Equity Investment Loan.. good idea?

Question

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!!

Ryan Muska · Answer

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.

Mason Weiss · Answer

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.

Andrew McGuire · Answer

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.

Home Equity Investment Loan.. good idea?

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