Posted by Tom on September 14, 2003 at 16:30:40:
I would like to do the same thing, I already have $125,000 (can) sitting in a credit line account waiting to be invested. I was wondering if anyone knows of any good books for the novice Real Estate investor. I obviously want long term capital gains, but a steady cash flow is what I am looking for, Any sugestions will be appreciated
Thanks…
Line of credit ??? - Posted by Liz
Posted by Liz on July 15, 2003 at 06:36:57:
Has anyone used a “line of credit” from your existing home to use towards closing costs on a new/used home with 100% financing/NO DOWN?
We are thinking about doing this and then renting the place to gain some positive cash flow…what do you think???
Thanks!
~Liz
Re: Line of credit ??? - Posted by ECB
Posted by ECB on July 20, 2003 at 14:00:59:
Liz:
I have a home equity line of credit (“HELOC”) against my personal residence. It is largely used to fund the closing costs or a modest downpayment. It is paid off annually with my bonus from my “real job.” Using the HELOC is how I bought my first rental.
As I was able to generate substantial equity in the first rental, I went back to the bank and put in place a line of credit against the rental property.
That provides me with two sources of funding — my HELOC and the line of credit against the rental property as well.
As an aside, I could have just as easily left the equity in the rental alone and used it to collateralize a loan for an additional purchase (i.e., grant the seller of the second home a 2nd on the rental). I just like having the liquidity available.
Finally, I would advise against ever borrowing more than 50% of the amount available on the line – it tends to depress your credit score. However, should the right situation come along, obviously you would want to take full advantage of your additional liquidity.
Hope that helps.
ECB
Re: Line of credit ??? - Posted by GL - ON
Posted by GL - ON on July 16, 2003 at 09:10:45:
That’s how I bought my first apartment house back in 1972. It’s pretty common. As long as you have the pos cash flow to make the payments it’s no problem.