You may have heard that all debt is bad. Although not all debt is created equal. Debt can be used as a tool to create greater wealth. Of course, this is only true when used carefully and wisely.
One way that some investors have used debt to their advantage is to make use of a Home Equity Line of Credit (HELOC). It’s a line of credit that can be used to purchase new investments and make debt work for you.
In this episode, Dr. Kim will discuss how utilizing a HELOC might make sense for you.
Are you interested in learning more about investing in real estate? Consider joining Passive Real Estate Academy. 
The Financial Freedom Through Real Estate Conference (PIMDCON 2022) is a curated, high-yield event designed specifically for physicians and high-income professionals.
PIMDCON 2022 will give you the strategies you need to invest with confidence from people who have already done it themselves! You will have access to Real Estate Strategies By Doctors For Doctors.
Here’s what Dr. Pranay Parikh had to say about PIMDCON…
“We have done virtual events. Although, nothing beats the excitement and enthusiasm that you get by meeting “in-person.”
I have found that by going to just one conference, meeting others who are in a similar place as me, I leave energized to take on my next big thing.”
It will be fun… especially since this is the first time that we will gather in years!”
You don’t want to miss it!
The conference will also provide wisdom and insight into navigating real estate investing in today’s volatile environment. JOIN US WITH THE VIRTUAL TICKET!
September 23rd – 25th, 2022 in Los Angeles, CA
>> Secure your virtual seat TODAY! <<
Here’s a breakdown of how this episode unfolds…
At its most basic level, a HELOC is simply a line of credit, much like a credit card. To secure this line of credit, you would put up your property as collateral. There is also a time limit on how long you can pull money on this line of credit, known as the draw period. The average term is typically 10 years.
[5:45]
A home equity loan (or sometimes referred to as a second mortgage) is different because rather than drawing from a line of credit source when you want, you have to take the full amount of the loan up front. Then you’re paying interest from day 1.
[6:06]
Why use a HELOC? Some people like having access to the equity in their homes and really want access to cash quickly and on demand.
[8:06]
When used correctly, HELCO can help accelerate the building of your investment portfolio.
[11:50]
Traditionally, HELOCs are often thought of in relation to a primary residence. However, there is absolutely no reason you can’t do the same on a rental property. 
We talk in depth about all of this and more in our course – Passive Real Estate Academy. Want to learn everything about investing in real estate with confidence? You can grab your seat right here!
[12:45]
Another popular way to leverage equity comes in the form of a cash-out refinance. A cash-out refinance, on the other hand, pays off the existing mortgage and takes its place as a different mortgage with different terms. A HELOC has a variable interest rate, which can fluctuate along with the US Prime Rate.
Hey there – are you subscribed to my podcast?
Click here to subscribe to iTunes! If you aren’t, please show your support of the show by doing so now. I don’t want you to miss a beat, so if you’re not subscribed, there’s a good chance you’ll miss out on those.
If you’re one of our super special listeners, I would be appreciative if you also left me a review on iTunes. Those reviews help other people find my podcast. Why not spread the insight to help other physicians and professionals on their passive income journey? Just click here to review, select “Ratings and Reviews” and “Write a Review,” and let me know why you enjoy the show so much. Thank you!
Download a Transcript (coming soon!)
Download on iTunes
Join the Passive Income Docs Facebook Group
Join the Passive Income Professionals Facebook Group
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Never miss updates, our weekly Newsletter, exclusive content and more.
Success! Now check your email to confirm your subscription.
There was an error submitting your subscription. Please try again.
About Author
