How to Use a Line of Credit or HELOC to Buy Investment Property

Not many people think to use a HELOC to buy an investment property. For most residential homeowners, home equity is simply a number on a spreadsheet, not something that can build wealth. With interest rates rising and traditional rental property financing becoming unattractive, HELOCs and lines of credit have become the unsung heroes of the real estate funding and financing world.

So what is a HELOC? A home equity line of credit, HELOC for short, uses the equity in your home as collateral to pull credit from. Homeowners who have been sitting on their primary residences for a few years may have a high credit limit just waiting to be used. These lines of credit are perfect for a short-term flip, a down payment, or anything in between.

So, if you’re feeling the crunch of more difficult financing coming down the line, or are just struggling to qualify for another home loan, lines of credit could be your next best bet. Henry Washington offers two ways to find these lines of credit, one of which you can pull from even without a home!

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Check out Henry’s Previous Videos:
House Hacking: https://youtu.be/MGiXYUrPB28
ADU Investing: https://youtu.be/3_DFe422ErI
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Find a Lender for Your Next Home Equity Line of Credit:
https://www.biggerpockets.com/loans?utm_source=youtube&utm_medium=description&utm_campaign=none
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How I Went From 3 to 20 Properties Using the Power of Home Equity Loans:
https://www.biggerpockets.com/blog/home-equity-loan-grow-real-estate-portfolio?utm_source=youtube&utm_medium=description&utm_campaign=none
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3 Risks and Drawbacks of Using Home Equity When Investing:
https://www.biggerpockets.com/blog/home-equity-risks?utm_source=youtube&utm_medium=description&utm_campaign=none
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How to Use a HELOC to Buy Real Estate:
https://www.biggerpockets.com/blog/heloc-buy-real-estate?utm_source=youtube&utm_medium=description&utm_campaign=none
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Henry: @thehenrywashington or https://www.instagram.com/thehenrywashington/
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00:00 Find Financing for Your Real Estate Deals
00:58 From Hot Housing Market to Funding Fiasco
01:38 Leveraging Lines of Credit
04:22 Unsecured Lines of Credit
06:01 Do You Need to Use the Same Lender?
07:07 What Credit Score Do You Need?
08:14 Rent Hack for Extra Cash
10:06 Only Buy Good Deals!

#biggerpockets #onthemarket #henrywashington


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