How to Use a HELOC to Buy Real Estate. What's not to like?

Brandon Turner says, "Using a home equity line of credit, popularly known as a HELOC, is one of my favorite creative strategies for investing in real estate."

Just be aware that the greater the leverage, the more risk you have going into any major real-estate downturn. The only thing that will keep you afloat are renters paying enough to meet your loan payments, etc. If a downturn slams the whole economy hard, you could have a hard time making payments. That's why old-school investors did better going into the Great Recession. They had more equity and lower loan payments.

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About Tom Usher

Property and casualty insurance broker/producer