Newbie Getting started

Hello all, Have been reading your posts for about a week now and I must say they are all very informative.

I am looking to get into REI and this place has been a great wealth of information and inspiration.

I have a question to get started though. I have no hard money to start investing (Credit scores arround 690) but I have about $45,000 built in equity in my personal home.

  1. Is it wise to use my personal home to draw investment capital?

  2. What would be the best way to draw it out if it is ok?
    HELOC or a refi?


Scott first and foremost welcome to,

I NEVER recommend borrowing against your personal home to buy investments! For one main reason you can ask almost any seasoned investor in this club it can go south on you real quick! And you can always go home if it does!

On the other hand that being said if that is the only way you can play the game by all means I recommend a HELOC for one reason if you only need 10k you are only paying interest on 10k if you borrow 45k and only use 10k you are still paying interest on 45k! Hope you understood that I even lost myself there for a minute!

Also with 690 credit score there are some 100% finance non owner occupied programs out there that you should look into!