HELOC hides equity
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HELOC hides equity (by DJ [VA]) Apr 3, 2021 8:58 PM
       HELOC hides equity (by Ray-N-Pa [PA]) Apr 3, 2021 9:06 PM

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HELOC hides equity (by DJ [VA]) Posted on: Apr 3, 2021 8:58 PM
Message:

I've been contemplating a lot lately regarding to have or not to have any / how much financing on future purchases.

I still have money from the rooming house sale I want to turn into cash-flowing, nice SFH rentals. I have an open HELOC on my personal home, that I used to get business going - but would rather be more separate going forward.

It has been great! I can withdraw and repay whatever / whenever I want, then do it again.

My latest idea is: Instead of doing a get-my-cash-back or cash-out mortgage after a cash purchase & repairs (with a fixed payment), put a HELOC on the property.

My thinking is, this way I will have money available if / when I need it, and it will show up on any search by a money-hungry injury lawyer as no / less equity .

Thoughts?

--68.229.xxx.xxx




HELOC hides equity (by Ray-N-Pa [PA]) Posted on: Apr 3, 2021 9:06 PM
Message:

Now is not the time to be thinking HELOCs. Now is the time to lock in the longest term financing that you can. Additionally I would be placing the properties into trust so making wrap around financing that much easier to transfer.

If you still want to use a HELOC to cover up equity, consider using equity stripping using your LLCs. --24.154.xx.x



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