Watch Next: Best Tips for Using a HELOC in 2024: https://bit.ly/3T3mWQD

Ready to buy your first fully done for you rental property? Book a free call with us: https://morrisinvest.com

❓Ask me a 30second question at https://morrisinvest.com/clayton

Watch Next: How to Create Your Personalized Path to Financial Freedom: https://bit.ly/392kAsB

What's Your Freedom Number? Download our free PDF to help you determine how many rental properties you would need to achieve financial freedom: https://morrisinvest.com/freedom

Ready to get your finances in order? Download the FREE 90Day Financial Empowerment Bootcamp: https://morrisinvest.com/bootcamp

Want to learn more about creating your individualized plan to wealth with a proven system? Join us in Financial Freedom Academy: https://financialfreedomacademy.com

‍ Sign Up for My Webinar: https://morrisinvest.com/webinar

The first secret you need to know about successfully utilizing a HELOC is all about shopping around. Listen, I love sites like Bankrate or NerdWallet for comparing banking products, but they’re not going to let you in on this secret: the best way to find a HELOC is actually by shopping local. Nine times out of ten, your local banks and credit unions are able to offer the most competitive rates and terms. In fact, your local banks want to build a relationship with you, so they may even be able to sweeten the deal if you open additional accounts, like a checking account, or set up services like direct deposit. Don’t be afraid to sit down with a few local bankers to see what they can offer you; you might be pleasantly surprised!

Here’s another secret a lot of people don’t realize: you can actually use the HELOC to pay off your primary mortgage. I know, on first thought, it sounds outrageous. Especially right now, when so many homeowners are locked into low interest rates… but if you play your cards right, you can essentially decimate the interest and time on your mortgage. Clearly, your bankers aren’t going to tell you this; they want to keep you locked into that 30year mortgage! This is a highlevel strategy that requires a great level of discipline, but trust me, it works. It’s not for everyone, but if the idea piqued your interest, check the description box below for more videos on this strategy, and my book on Amazon, How to Pay Off Your Mortgage in Five Years. https://amzn.to/2OrjTSD

This next secret is another one your banker won’t offer up as a suggestion: you can use a HELOC to buy performing assets like rental properties. Again, the HELOC is intended for home improvements, but using it to buy performing assets is a perfectly valid use of the funds! In fact, I’d argue that having HELOC funds at the ready is a smart strategy for any real estate investor. Here’s why: since the HELOC is a revolving line of credit like a credit card, it’s a great tool to have in your pocket.

Another factor you need to consider about getting a HELOC is that it can be risky. Here’s why: a HELOC is a secured loan, with your home as collateral. So if you get yourself in a situation where you can’t pay back the line of credit, this could mean big financial trouble for you. Any time you’re planning on using a HELOC, be sure to calculate and plan your payback strategy. Don’t do it unless you know for sure that you’ll easily be able to make your payments.

I hope this video brought you a ton of value. The HELOC might be the #1 thing I get questions about, so be sure to hit the like button and leave a comment below if you want to see more videos on accessing home equity and creative financing ideas.

DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.