Best Ways to use a HELOC to Invest in Real Estate

I recently got a great question on the channel about HELOCs. The question was - "is it better to use a HELOC to pay for down payments or to buy properties all cash?"
Today, I want to go over these two methods and tell you which I prefer best. I've used both methods in my business and by far I prefer the down payment option. This allows you to get the most out of your HELOC in the least amount of time so that you can buy more real estate.
Enjoy the content today and hang around until the end for prayer! Blessings!!
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[@michaelfiggers1810]

Hello Pastor Winder (Property Pastor). I am so glad I discovered your channel tonight. I have just open a rooming house and I really needed some inspiration, information, and coaching!! I have just listened to 8 of your videos back to back and going to review them all again tomorrow. This has been sooooooo very helpful and has answered many of my questions and challenges. Please keep posting these! I'm praising God for leading me to your channel. I have subscribed and will be listening consistently for your videos. Thank you again!

[@Diy-crush]

Whoa, that prayer!!! Thank you!

[@Diy-crush]

I'm trying to see what your shirt says.....IT'S THE EMPTY???? ....LOVE your content, pastor! Well done!

[@ThePropertyPastor]

Thanks for tuning in! The shirt says "it's the empty tomb for me"

[@healthymentalapparelco.9576]

Good stuff man. Much needed info and thanks for that powerful prayer.

[@wuhouse8]

Thank you for the video. Are you doing cash out refinancing after purchase?

[@Eddie-gb3bn]

I can’t even get a tiny house for 100k

[@KBCrochets]

Would you recommend the same with home equity loan as down payments?

[@erickayson588]

Thanks for the great information. Have you heard of a hybrid heloc?

[@ThePropertyPastor]

Yes I’ve heard of them. Not sure how popular they are but offer nice features of fixed rates

[@erickayson588]

@@ThePropertyPastor - I contacted my credit union today. They advised would take over 90 days to close on a HELOC. They advised they are swamped with applications. I guess I'll have to look elsewhere.

[@obie1coby]

I have 2 helocs and haven't been able to make the numbers work on a purchase. So I've been saving them for rehabs

[@ThePropertyPastor]

Are you trying to do all cash purchases? If I were in your shoes I would use the HELOCs to fund down payments. If you use hard money for example you can fund the 10% down payment and the HML would cover your purchase and rehab. Then you can rinse and repeat and pull all of your money back out

[@antonioalford-el6208]

I'm thinking of using my HELOC to build either a 3 family or boarding/airbnb. Would have any advice in the pros and cons of each?

[@ThePropertyPastor]

I wouldn't build from scratch. I'd look at buying an existing property and having it fixed up. The cost of materials and permitting can make it hard to be profitable if you start from scratch. If you want to be more passive (hands off) with the property, I'd recommend the 3 family (or 4 family). The rooming house option works if you can do more than 4 per house. If you do Airbnb, I wouldn't do more than 3 per house because people will want higher end. There are pros and cons to each option. Really depends on your goals and how active you want to be in your business.

[@antonioalford-el6208]

@@ThePropertyPastor Thank you for your response. I have done rehabs and the demo and unforseen problems once the walls come down...my gawd$$$$. I like the 3 or 4 family idea. Thx

[@eprohoda]

hoowdy?~ this is top done-=)

[@ThePropertyPastor]

Thanks for checking out the vid!