I am totally new to REI and I just want insight from experienced investors out there what they would do if they had this kind of equity that I have. But, educating myself is the number one priority right now before I go forward with anything just to make it clear. Well, what would you experienced investors do?
Use that mony to work for you, i first started with a rehab house and worked my way up to larger investments. As, what i am assuming is your first investment, find somethign you are comfortable doing, rehab, lots, pre-construction, option contracts, conversion projects. That is a lot of capital to work with, and i think you will be happy to see that money start working for you. This is a great forum with great information, just take everything with a grain of salt. Best of luck…
thank you for your encouragement. Is there anyone else out there with ideas?
Thats exactly how I started. What i did with my equity is obtain a heloc and did what cbrechbill advised. I bought new construction and condo conversions.
Nice to meet you.
I actually have used a Heloc, on my last 4 properties. I like pre-constrution new builds. I bought one yesterday with a $28,000.00 positvie Equity position using this technique. I have built a team that locates great properties for me.
This last one will be a rental property with a decent positive cash flow.
I have done re-habs using the Helco method as well.
Use must learn to use, OPM, OPE, and OPB to your advantage.
Other Peoples Money, Other Peoples Effort and Experience, and Other Peoples Brains.
“Remeber Education does not cost it Pays”
Happy Investing and good luck! 
For us newbies…
What is a Heloc?
Thanks,
HELOC
Home Equity Line of Credit
Works sorta like a credit card with your property being the back up for it. It basically allows your properties equity appreciation to work for you.
Hope this Helps… 
ya know, I’ve never applied for a HELOC - I kinda like seeing my equity build up - but what’s the point of just having it sit there if I could put it to use. What are the basic steps for obtaining one? Is it as simple as filling out an application?
Also, since none of my houses’ loans are under my name, will it be as easy for me to use this credit - or will I need to involve the investors whose name the loan is in?
Wallace and Las Vegas Investor,
I am also with HELOC. I have researched many of these preconstruction deals. You have both found success, did you get in early? Did the specific projects provide property management once the unit(s) were ready? What was the required down payment, 10%-20%? What is the required hold time before resell?
Sorry so many questions in a HELOC thread. I have researched Vegas and Florida, which are the popular choices. I liked what I have found in South Carolina, and Whitehorse, Canada. The prices are still relatively low and they have been very helpful. I want to spread my money out in as many different properties as possible.
I have learned that once you purchase a property with a HELOC, if you have purchased correctly (70%-80% LTV) you can turn around and refinance to pay off the HELOC. You must research the lenders and make sure that you can refi quickly.
Sorry again if I rambled too much,
Take care,
Andy Gibbs
problem with SC is it appreciates only 3% a year. its a linear
market. i’d prefer something thats a little higher than that.
maybe 8-12%.
what info do you have on canada?
I’m not sure what I was thinking last night but I realized this morning that I doubt it would be easy to get a HELOC against a non-owner occupied property. Is this true?
Possible, but not easy; only a few banks do them and charge lots of fees and high rates
Two things you can do. Join a local Real Estate Investment Group. Network with that group and identify two or three experienced investor who might be willing to help/mentor you thru your first few deals. You could also go to Ebay.com and research under Real Estate Investing where you will find many Programs, seminars and books at extremely resonable prices. Good luck and good investing.
Tom Chenoweth
Hi,
I think everybody just got a little bit off topic with the heloc’s but that’s ok.
I am a commercial R.E. & Loan Agent.
I, personally, would never go the route and start with a rehab and work my way up, especially if I had a nice down payment.
I would immediately try to get a property with good cash flow, then a little later, refinance, put that in another property, etc. etc.
Good luck.
Joyce :multiflash:
I know its late but I just stumbled onto this question. Equity in itself is not going to do you much good unless you sell or refi. If you refi you can put the money to good use by being a private short term lender on deals. You can loan on downpayments, flips, wholesale deals, etc.