In article <1WfKj.890$V14.817@[EMAIL PROTECTED]
>,
"al" <allen@[EMAIL PROTECTED]
> wrote:
> I have about $250,000 Home Equity Line of Credit from my current home.
> If I want to invest and buy let's say a condo for $250,000.
> Would it be better for me to get the money from my HELOC and pay off the
> condo or get a loan from a lender?
> Is one better than the other? which one has lower interest rate?
If either of the loans have variable rate, then you have more risk.
The H/E loan may be tax deductable, where as a loan for investment
property may not be. You need to look into the details. Do you
plan to buy more real estate? If so, be aware that banks will
cut you off after the 3rd or 4th or 5th loan. Using your H/E
loan allows you to buy a property without a new loan. Later,
you can look at a 3rd property, and you have a paid-for 2nd
property to borrow on. You will find it easier to get that
3rd, 4th, and 5th property. Again, if the condo is bought
to flip, it will be easier to sell since you will not have a
loan on it that has to be taken care of at closing.
-john-
--
======================================================================
John A. Weeks III 612-720-2854 john@[EMAIL PROTECTED]
Newave Communications http://www.johnweeks.com
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