DON’T Use a HELOC to Buy Investment Property Unless…

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Published 2023-10-22
Episode #834

About to take out a HELOC to buy an investment property? This could be a move you regret for years, ESPECIALLY if you’re doing this in 2023. As home prices have risen and real estate investors search for more money to invest, the HELOC (home equity line of credit) has become an obvious choice for many. But drawing from these lines of credit could come with a lot more risk than you might think and may tank your cash flow.

David Greene is back on another Seeing Greene, live from Florida! But that’s not all; Rob (Robuilt) Abasolo is coming on to tag-team your real estate investing questions. They'll first talk to Tim, who wants to invest in real estate in high-priced Southern California. He has a townhome with some sizable equity but doesn’t know how to fund his first investment or make the most cash flow. David and Rob also hit on what to do with inherited or paid-off properties and how to scale when you lack the capital. Plus, we read a two-star review and combat it with a YouTube comment compliment from David’s secret admirer.

Want to ask David a question? If so, submit your question here (www.biggerpockets.com/david?utm_source=youtube&utm…) so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can jump on a live Q&A and get your question answered on the spot!

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How to Use a HELOC to Buy Real Estate:
www.biggerpockets.com/blog/heloc-buy-real-estate?u…
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Connect with Tim:
BiggerPockets: www.biggerpockets.com/users/tima222?utm_source=you…
Instagram: @timalhanati or www.instagram.com/timalhanati/
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Connect with David and Rob on BiggerPockets:
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Rob: www.biggerpockets.com/users/robuilt?utm_source=you…
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Show notes at: www.biggerpockets.com/blog/real-estate-834?utm_sou…


00:00 Intro

01:16 Quick Tip

02:52 How to Invest in Expensive Areas

11:12 HELOC for Down Payment?

14:01 Connect with Tim!

14:31 Our 2-Star Review

16:15 Questions from The Comment Section

22:14 Where to Find Money to Invest More

28:45 I Inherited a Property!

33:10 How to Fund Home Repairs

36:33 You're Seeing Greene

All Comments (21)
  • A multi screw driver and a allen key set must bet at your STR in the supply closet. Also a little bottle of locktite
  • @Alexedmartin.
    To obtain financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly on a monthly basis." - Robert Kiyosaki. I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made😊
  • @masoncnc
    Renting in Kali means the tenants own your property, but you keep the mortgage. I'd never rent in there
  • I've been listening to your podcasts for about 3 years now, and finally decided to dive in. Probably in the worst way possible, but hoping for the best. I actually live and work outside the United States, but I just signed a contract on a 4 plex in Texas! I won't be able to get back there to look at it, so it's going to be completely sight unseen, using 2 home inspectors, and trusting a realtor 🤣 I've been wanting to do this for a while, and just never left like I was ready, and I still don't, but now is better than never, so here I am.
  • @knahknoh
    Hands down the BP Platform has revolutionized REI for a generation of Americans. And it’s been done w/ a spirit of generosity (anybody could pay Pennies on a dollar for intellectual capital that will pay big dividends if he/she is willing to put the work in)… idk what Josh Dorkin’s vision was when he started this machine but it continues to create and inspire shared value - that u seldom see in business and industry! 🎉cheers 2BP, Dave Greene and all the BP stakeholders
  • I want to be the first to officially say the beard takes my David Greene crush to the next level!! David somehow never runs out of solid insights to share! Like the fact that interests rates are controlled by note investors and not the Fed..I could go on an on... I've been listening for years, I can thank and blame you David and Brandon both for my initial commitment and understanding of real estate. I've had interest for a while, but they really made the concepts click in my head, fast forward to now and I'm a new real estate investor! David talks about making your current portfolio perform more efficiently, thats what I did. I only have one 4 plex, but I JUST got all 4 leases signed. I have one long term tenant, and the other three are a combination of short and mid term suites all at different price points so that there is something for everyone's budget and I remain diversified. Give me a shout if you want to chat about it! Thank you David, Brandon, AND Rob...I didn't forget about you. You're inspiring too!
  • @peaslead
    Bought a property with my heloc in February. Aggressively paying that off and hoping to do it again soon.
  • @smilexa
    Thank you guys i love learning from you i listen to pandora podcast we currently own 2 rental properties paid in-full hopefully next time i comment i would have 5 or 6 thank you for the info
  • @cavy95
    Add blue or red locktite to that furniture.
  • @victorlozano6715
    Is their an episode on went to use a dual agent? The do and donts
  • @ElectroWits
    that is cool, I used to rent walking distance from that Boston house
  • @DrWenChannel
    So the short answer of "Unless..." is?? Just curious
  • Having bought WAAAAY to many RE classes ( although I do use all the info, as it applies, nothing wasted, just paid too much) I can honestly say Bigger Pockets is a FABULOUSLY, high quality resource at very low cost. Accurate, inspiring, supportive and has lasted a long time for obviously accurate reasons. Thank you Bigger Pockets. Blessings, ❤