HELOCs can make you rich.
Why I love them?
Oh, yeah.
You heard that right.
I know, I know.
So many people tell you that HELOCs are scary and dangerous and that you shouldn't do them.
Well, maybe even I said that.
But they are awesome.
I absolutely love them and I'm going to tell you why.
Let's go.
I'm going to give you a full detailed explanation on HELOCs (Home Equity Lines Of Credit) and
why you should love them.
I'm going to share with you my biggest insider secret from working more than 15 years in
mortgage banking.
Things that most people do not even know about HELOCs, I'm going to share with you.
And I'm going to share with you the real reason why most people don't get rich with HELOCs
but why you can.
So, let's talk about what is a HELOC?
Because this is so important.
A HELOC is a Home Equity Line Of Credit.
That is what HELOC stands for.
And it is a type of loan, it is a type of mortgage that allows you to tap into the equity
in your home.
Most people do not think it's a mortgage but it is truly a mortgage.
It's just a different type of mortgage.
The great thing about helocs but most people do not know is that it is similar to any other
line of credit.
Meaning, you have access to the full amount.
So, if they give you a line of credit for $100,000, you do not have to use the entire
thing.
You could use 5,000 or 10,000.
And you would only have to make payments on the amount that you used.
So, for example, if you have a house and you have $100,000 worth of equity, meaning, you
have a house, it's worth $100,000 and you don't owe any money on it, you could probably
tap into like $80,000 and have that at your disposal at any time.
Or if you had a home and you've paid down the first mortgage, you can get a HELOC as
the second mortgage.
And now you have money to do other things with.
Let's talk about that.
So, let's talk about the bad side of helocs because before I tell you why I love them,
I have to tell you the bad side because it's true.
There is a bad side to helocs.
Like I said, helocs are awesome because they allow you to tap into the equity in a property.
Meaning, you now have money.
You turned equity which is this intangible thing.
Not anything you can hold in your hand or spend at the bank.
Equity is money is money, you know, on paper you have worth but if you have equity and
you don't cash it out, there's not really much that you can do with it.
It's just kind of on paper.
But a heloc allows you to draw against that equity and now have money that you can use
to spend on things.
And the problem with the heloc is most people do not realize that (1) it is a mortgage.
Yes, it's a line of credit, kind of like a credit card.
But it is attached to your property.
You are using your property, your real estate as collateral for that loan.
So, if something bad happens and you're not able to pay for it, you can get foreclosed
on.
That's the bad side.
But let me tell you the really bad side because again, in most cases you should be able to
pay it off or you could just sell the house if for some reason you can't make your payments
on your heloc.
But where most people really fall down is what they used the money for.
Helocs can be awesome but if you just spend the money on a vacation or paying some bills,
you're probably going to end up in a lot of trouble.
And you may end up losing your home and everything else.
So now let's talk about why I love helocs because again if you are careful, when you
know and understand that a heloc is a mortgage and that it is attached to your property and
not paying the heloc could end in a foreclosure, you know have a bigger understanding than
most people ever do.
But the key to a heloc is what are you going to do with the money.
That is so important.
So many people would get a heloc and they do 1 of 2 bad things.
They'll do one, they'll spend the money.
You know, blow it on a vacation or paying off some bills and then they rack those bills
right up.
And now, they don't have any equity or any money and all those bills are still there.
That's one bad thing.
Or they take it and they don't do anything with it.
Some people will get a home equity line of credit and never spend any of the money or
use it.
What is the point of having all of this money if you're not going to invest it?
That's the keyword.
You don't want to spend the money.
You want to invest it.
So, if you get a heloc, let me tell you how it can make you rich.
The thing that I do with helocs and what I did to make me a ton of money is I use my
helocs to invest in real estate.
I have used my helocs to get me more income-producing properties.
So, for example, I bought a home subjet-to.
Meaning, I was able to get a property.
The property is in my name and the mortgage remained in the previous owner's name.
They sold the property to me subject-to.
Now, we had a separate agreement.
And of course, I had to make the mortgage payments and then eventually I refinance out
of that and put the mortgage in my name.
It was an amazing way for me to get properties at a very cheap price, not spending very much
money.
And I made an entire video teaching you exactly how to do this.
Make sure you check out the entire playlist because I teach you all of this.
But when I refinanced that out of my name, I actually had a lot of equity.
Because when I refinanced it, they did an appraisal.
They appraised the property.
So, I had the property and it was worth now about 200,000 and the mortgage on it was a
little over 100,000.
So, I had nearly $100,000 worth of equity in a property that I had only had for like
a year.
So, I wanted to tap into that equity so I could get more properties.
So, I refinanced out of that mortgage.
You know, the other person's mortgage, put it in my name.
And then I got a heloc for $80,000.
I wass able to get a heloc for $80,000, a second mortgage on that property.
And I used that money to buy 5 more properties.
I think it was even more than that.
Just being honest with you.
Think about this.
I got that first property that I'm doing.
I only got that one for like 15,000.
It's all I had to spend to get it.
If you can get a property for 5,000; 10,000; 15,000 and someone gives you $80,000, you
can get a lot more properties, right?
So, that's what I did.
I only use my heloc to get me more rental properties.
That's it.
Nothing else.
No paying down any bills.
No going on vacation, no purses, no shoes, no Chanel glasses.
Okay, guys?
You only want to use a home equity line of credit in my opinion to get more income-producing
real estate.
And so, that is why I absolutely love heloc and that is how I have made myself rich.
I have an entire course that I created where I teach you all of this and more.
You can access that free training at Noellesfreetraining.com.
That's Noelle (N-O-E-L-L-E-S) Free (F-R-E-E) Training (T-R-A-I-N-I-N-G), ".com".
Noellesfreetraining.com.
It's a complete course.
It's about an hour-long that teaches you how to invest in real estate with little to no
money and make a lot of money in the process.
It's absolutely free and it's made just for you.
Please check it out.
I just want to make sure that you have all of the resources, all of the tools, and all
of the knowledge that you need to be successful.
This is Noelle.
To your success.