HELOC To Buy Investment Property: Step By Step Masterplan

Investment Strategies
So.. You want to use a HELOC to Buy Investment Property? Whether you’re looking to buy a rental property or a fix and flip, a HELOC CAN be used to buy investment property. It all comes down to a proper, sound, and logical plan on using a HELOC to buy an investment property. In this video, we’re going to focus on buying rental properties instead of fix and flip projects… We’ll have another video just for fix and flio or rehab properties! Enjoy!

How to Pay Off Your Mortgage In Just 5 to 7 Years: https://www.youtube.com/watch?v=3f-ebCjeH8o

FREE HELOC Strategy & Payoff Calculator: https://debtfreeaccelerator.com

Okay, before we get to the technical details of the strategy, we first have to lay out the ground work… Here are couple of cautionary warnings before we get started… And this isn’t a financial advice. This is my pure 100% opinion:

1. Don’t Exceed more than 50% of your HELOC Limit usage… This is more to protect your credit and just in case a recession rolls in, we don’t want to be caught with large amount of balance on our hands.
2. Don’t let your debt accumulate more than 70% of the value of your property. Again, just another recession proofing tactic.
3. Don’t use debt to get into another debt. I know a lot of you guys will be tempted to use your HELOC as a down payment. This is a HUGE no-no…

Okay, so what we’re going to do is use maximum of 50% of the HELOC limit to purchase property outright. Of course, we’re going to assume that all the numbers in the rental property checks out. If you’re unsure on how to calculate numbers on a rental property, we have another video on how to do that: https://youtu.be/WYb6UTajX2s

Okay, next, we’re going to use the cashflow generated by the rental property to pay off the HELOC balance as fast as possible using our Accelerated Banking strategy. Here is the strategy explanation right here: https://www.youtube.com/watch?v=3f-ebCjeH8o

Having the extra cashflow should help you pay off your HELOC faster. The key is to NOT touch the cash flow just yet for your own discretionary spending but rather focusing on getting the HELOC balance down to zero so that we can rinse and repeat. One the HELOC balance is down to zero, we’re going to repeat to create more cash flow which means more cash flow to pay off our next set of HELOC balance.

If you continue to rinse and repeat this process, you’ll find yourself being able to pay off the HELOC faster and buy your next property sooner each time…

The eventual goal is to create cash flowing rental portfolio to where you can sell this and 1031 exchange it for a one giant multi-family apartment building where the management is easier and your opportunities to create more cashflow is greater!

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The Kwak Brothers are millennial real estate investors who have acquired over 82 Units of Rental Units and have raised over $20,000,000 of capital for their real estate deals. They are based out of the Chicago-land area and they are dedicated to helping hard-working people become financially free real estate investor! They specialize in owner financing acquisition and raising capital. They are the creator of the FORCE Strategy (Find the deal, Owner Finance It, Raise the Capital, Cashflow It, and Expand your Financial Freedom)

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—DISCLAIMER— The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.

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