How to Invest In Real Estate Using HELOCs
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- Опубліковано 29 бер 2023
- Here’s how to use “untapped equity” in any property you own in order to build wealth.
Disclaimer: Be careful doing this on your personal residence. This takes discipline, so be smart.
1. If you have equity in your house, you can take out a HELOC (Home Equity Line of Credit)
2. Use the HELOC funds in order to start a whole life insurance policy (used for Infinite Banking)
3. Borrow against the Infinite Banking Policy in order to Invest in Real Estate. You can flip this property or fix and rent. If you choose to fix and rent, you can refi the money back out. Just make sure the property provides cashflow.
4. Pay the original HELOC off once you sell or refi the investment property. Or you can pay off the money you borrowed from the Infinite Banking Policy. (Paying off the HELOC is recommended)
5. Do it again!
If you’re keeping the property, the key is to make sure it’s providing cashflow.
Hope that helps you out today!
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Also, share and leave a comment below.
Facing a financial crunch, especially as seniors, we're pondering the idea of cashing in on our home equity. The question is, should we invest the money, rent, or relocate?
Homeowners seem to be increasingly exploring home equity, especially when faced with critical needs. It's a better option than borrowing from credit cards.
Except when the interest only period ends….
LOVE THIS!!!
-Anthony
Is that tax deductible ?
What about the revolving interest rate
The idea is that you don’t want to have money out for a long period of time. For example let’s say you need $200k to purchase and renovate a home to flip and you use a heloc that varies from 10-14% and you have the money out for 5 months. If we split the difference and call it 12% interest you’re paying $10,000, but if you know how to flip your upside would be $20-$50k depending on the deal. Yes you have to pay it, but you’re leveraging $10k and to double-quintuple your money
Also its important to truly understand the difference between how simple and amortized interest works and the rest of the strategy he's saying in the video not just the snippet.
I guess you do this until the interest rate skyrocket 🤔
The concept is replace the mortgage with HELOC. The HELOC is simple interest vs the Amortized interest of a mortgage. If you cashflow like he says in the whole video it literally engulfs the interest at least with my consultation he was able to show the numbers.
Don’t do this
Of course not if:
1. You’re not responsible with money
2. You’re not savvy enough with investment
Otherwise it’s a great strategy.
What’s your solution?
A confused mind always says, No! Stay in your comfort zone. Don’t grow.😮
@@sandrabrooks7930it’s not a confused mind. The risk associated with borrowing on a primary residence is not worth it. Also banks can call the loan amount back on a heloc at any time. Interest rates are variable and even the “fixed rate” helocs are only fixed during the draw interest only period of the heloc.
@@sandrabrooks7930if the bank calls on the heloc, you can’t afford the snap interest + principal payment at the end of the draw period, or your “investment” goes bad on the second home then they foreclose on your house