Use Own Equity To Invest?

mots32 profile photo

Just wondering what you guys thought of using home equity loans/line of credits to invest in more real estate. We have great credit, no cash (that we want to use) and a chunk of equity. What would you do??/


  • SavvyYoungster29th September, 2004

    I've done this to aquire one of my properties. I got the HELOC for a couple of months to pay the down payment on the property and get around PMI. I then refi'ed both properties and eliminated the HELOC.

    HELOC's generally do a number on your creit though, so you don't want to keep it outstanding.

  • heather20046th October, 2004

    Yes, yes, yes. Go for it. It's called leverage- using other people's money and it is the fastest, best way to make yourself money.

    I would get a line of credit on the equity in your home. It works exactly like a checking account. That way, you won't pay interest on the money until you actually draw it. I would apply for it immediately, so that the account is ready for when you find a property.

    Good Luck

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