Funding your renovations with a HELOC (Home equity line of credit)
As some of you may know, Amanda and I prefer to invest with a more hands on approach because it matches our skillset. We get always get involved with large renovations in an attempt to build equity in to our properties. We've funded countless renovations with private lender money, but that's about to change.
Using a Home Equity Line of Credit (HELOC) is a really great option, provided that you have enough equity in a property to fund your project. Our investment strategy requires constant funding for one project, which is paid off by the sale of the property, and then requires new funds for the next project. This can get really expensive when dealing with lawyers and administration fees for private funds. Not to mention the interest rates are not good.
We're about the have our home appraised so we can get a HELOC and get some funds that will be available to us to use over and over with no additional admin fees. But first, we needed to do a little fixing up of our home...
Last edited by Marty Gordon; 2017-03-17 at 09:50 AM.
Reason: real estate investing