Hi
I am rookie and wanted to know best ,smartest way to take out equity in own home to invest in real estate

1. take out line of equity,,tap it when you need it?

2. take out lump sum with a refi? if so on what terms..do you set up a interest only for 5 years etc?

My plans are to obtain preconstruction real estate that I will sell after built in 2 years
Thank you for the help
Ken

You might want to be carefull with plans on selling something 2 years out. Interest rates will rise and the market will not be what it is today. Plus I would put money on the fact that a large majority of the sales in the building you are looking at are thinking the exact same thing as you. Talking with agents that are working some of the highrise presales in Chicago they estimate that 60+% are investors. A couple think it's closer to 80% and that will mean they will all be in for a big surprise once they close and all try to sell at the same time.

With that warning I would say that a LOC is a good way to go as you only need to start paying interest once you pull the money.

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Hi,
Why use your equity when you can share equity with a homeowner who is in foreclosure. I invest in foreclosure bailouts, I get part of a homeowners equity for stopping their foreclosure... I like this because it is zero out of pocket and 10K up front and more cash at closing.. Email me at kamuinvestmentgroup@yahoo.com and I will tell you more about investing in foreclosures.