Thanks RRs! 👍 1. Totally agree that a primary residence is an appreciating asset. 2. Appreciating assets build equity. 3. Equity that can be used for collateral for a loan to acquire & rehab rental properties. 4. Years ago, I TOTALLY used a $100K HELOC on my primary residence to begin my journey of very successful REI acquisitions to this day.
HELOC lenders don't necessarily have to know what the purpose is for borrowing the money. Once the line of credit has been granted, the borrower can take out as much as they need and use it as they please.
Please educate me as to how a primary home is an asset if it takes money every month to keep it running. It does not make me any money like an investment property would. Thank you for your time
I purchased my home 9 years ago for $119,000 it is now worth $309,000 I owe $80,000 the spread 309- 80=$229,000 that I can now use to buy multiple properties rent them out have tenants pay the mortgages and wait for more appreciation. see first home scenario.
You must think of it from an idea of net worth aspect. Your physically paying the same fixed rate mortgage every month as your house increases in value.
Thanks RRs! 👍
1. Totally agree that a primary residence is an appreciating asset.
2. Appreciating assets build equity.
3. Equity that can be used for collateral for a loan to acquire & rehab rental properties.
4. Years ago, I TOTALLY used a $100K HELOC on my primary residence to begin my journey of very successful REI acquisitions to this day.
What question to call when asking banks. Lol
Great answers to many great questions. Much appreciated! Thanks so much!!
I have bought 3 dozen houses and never heard of an Evergreen loan! I love learning from you both.
I thought you were not allowed to borrow money for a down payment? How can you use a line of credit in that way?
HELOC lenders don't necessarily have to know what the purpose is for borrowing the money. Once the line of credit has been granted, the borrower can take out as much as they need and use it as they please.
How long must you be on your current job to get approved for a Heloc?
Good deal. Thank you guys.
Thank You Tony and Ashley
Please educate me as to how a primary home is an asset if it takes money every month to keep it running.
It does not make me any money like an investment property would. Thank you for your time
I purchased my home 9 years ago for $119,000 it is now worth $309,000 I owe $80,000 the spread 309- 80=$229,000 that I can now use to buy multiple properties rent them out have tenants pay the mortgages and wait for more appreciation. see first home scenario.
You must think of it from an idea of net worth aspect. Your physically paying the same fixed rate mortgage every month as your house increases in value.
@tedhren-jb1jc thank you 😊 that makes sense
@@andresserrano5683 👍thanks