OfflineSorry about the repeats but I am going to try this again. Apprarently the last two were not readable due to a computer glitch.
I have the money to move on a property through a HELOC. If I paid for a property with the HELOC I can move fast and make a cash offer to a seller.
If I decide to just pay the HELOC payments it would be interest only, but I can always pay more w/o penelty. After the purchase I am considering then taking a traditional mortgage for 30 years and then paying the HELOC off.
Is this a method anyone on here is using lately? Do you find it beneficial since you don't have to comeup with a down payment and can move fast? Or should I try to get a traditional pre-approved mortgage and just use the HELOC for a small down payment and pay on both?
Thanks!
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME" 
Pay cash for the home and rehab-then refi and get your money back to pay off HELOC then repeat process.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Hey Angie there is no such thing as a stupid question! Now I would get a traditional mortgage but I do most of the work myself. You know the floors , painting, new A\C system. The stuff I could not do like SOME of the plumbing and ALL of the electrical I would get my friends to help me out on.You have friends who do plumbing or elecrical. Then I would rent it out about 100 to 200 dollars more than the mortage.Not to mention a $500, or more Deposit plus $150 more on deposit if they wanted pets. There is $800 cash in your pocket the first month!I don't think I would get both. That way you will not feel like your under alot of pressure. Well that is my vote.Remember it is what YOU feel confortable with! Good Luck!
Hi,
Thank you for your input, I appreciate it.
Best,
Angie
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME"
This is probably going to sound rediculous but, u guys keep saying HELOC what is that short for?
YOUR HERO, SULLY
HELOC
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
thanks cbrpower,i appreciate your reply
YOUR HERO, SULLY
So, you're saying the HELOC would come from an already owned property to pay for the downpayment on the new property, right?
Yes.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Sorry, I just noticed this topic.
There's nothing that motivates a seller more than CASH! Especially banks with REOs - Real Estate Owned, properties that have already been foreclosed on and are owned by a lending institution. Most of the places I've been buying this year are REOs, and the banks will jump first at an offer of cash, because they know they don't have to wait on financing. What I would do is use the HELOC for the whole thing, and then refinance it into a 30-year fixed. The only catch is that I also don't put any contingency on my offers. I already know what I want, and I'm gonna get it. I know we're taught to put an "escape clause", and that might be wise for most, but would YOU want to accept an offer that the buyer could add "only if I want to"?
Anybody, feel free to dispute this and give reasons "why not".
Just putting in my 2 cents.
Rina
P.S. If you're going to do that, bring your "inspector" with you when you go to look at the house, so you know there won't be any surprises. Make sure you have all your information BEFORE you offer.
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
HELOC = Home Equity Line Of Credit. It works like a credit card where you are charged interest on the outstanding balance. Usually a HELOC is tied to the Prime Rate. So when the FED lowers the interest rate, your HELOC interest rate goes down. For small amounts of home mortgage, the HELOC is a great idea. The payment is interest only like any VISA card, so it gives you more flexibility. But the HELOC interest rate is not fixed. So be careful not to owe a lot of money on the HELOC because when the interest rates rise, lookout! But right now, they're pretty low, so it's a great source of cash.
Good point, REALTOR10.
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249