362: Rookie Reply: HELOCs Explained and How to Invest with BAD Credit

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 1 February 2024

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

Getting a home equity line of credit (HELOC) is one of the easiest ways to leverage your home equity and buy your first rental property. But what is the best way to use one? Are there any drawbacks? After today’s deep dive into HELOCs, you’ll have all the answers! Welcome back to another Rookie Reply! In this episode, we’re not only looking at HELOCs but also comparing them to “evergreen loans” so that you can choose the right financing tool for you. Is bad credit preventing you from investing in real estate? You might have to get creative! Ashley and Tony offer several ways to invest while you’re fixing that credit score. Stick around until the end for the best value-adding home renovation projects that will help you raise rents! If you want Ashley and Tony to answer a real estate question, you can submit a question here, post in the Real Estate Rookie Facebook Group, or call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover: How to use a home equity line of credit to buy your first rental property How to buy an investment property before fixing your credit The BEST ways to invest in real estate with a small amount of cash HELOCs vs. evergreen loans (and which one is right for YOU!) Value-adding home renovation projects for your rental properties And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Ask Us Your Investing Question Apply to Be a Guest on the “Real Estate Rookie” Podcast The Step-by-Step Guide to Finding the BEST Off-Market Real Estate Deals How I’m HELOCing My Way to Wealth Should I Fix My Credit Before Attempting to Invest in Real Estate? Check the full show notes here: https://www.biggerpockets.com/blog/rookie-362 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode 362.
0:05.6	Today we are doing a rookie reply to answer your questions.
0:10.2	We have questions about getting an evergreen loan and learning what that actually is.
0:16.0	We are going to talk about making the best use of your rental property with exterior backyard upgrades
0:22.3	and how to determine that those will be the best
0:24.8	upgrades for your property in your market. We're also going to touch on a heel lock
0:29.9	and also what to do if your credit is not that great and how to start investing
0:36.5	before fixing your credit.
0:38.6	I'm your host Ashley Care and I'm here with your other host Tony J Robinson.
0:44.0	And welcome to the Real Estate Ricky Podcast
0:47.0	where every week, twice a week, we're being you
0:49.0	the inspiration, motivation, and stories.
0:51.0	You need to hear to kick kickstart your investing journey.
0:53.4	And like Ashley said today, we've got a slate of amazing questions lined up for you.
0:57.6	So we're going to talk about a Heilock, a home equity line of credit.
1:01.5	So we have great questions coming in today. In the
1:04.4	he-lock we're going to describe exactly what that is and what questions to ask a
1:09.4	lender when you're considering getting a he-lock? The next thing we're going to touch on is an
1:14.0	evergreen loan. Have you ever heard of this type of loan? We're also going to talk
1:18.7	about what the difference is between an evergreen loan and what a helock is and there's also some similarities.
1:26.0	Then we're going to go into improvements that can pay off big by increasing your rent on your property or your daily rate on a short-term
1:36.1	rental property. But at first we're going to talk about the bad credit but you may
	...

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