I have zero experience, but I hope my question can start a conversation and help others.
Hypothetically, let’s say you’re approved for a $140k HELOC at ~9%. Following the model shown on Mr. Naugle’s YouTube channel in Dec 2022 (How To Earn Money Investing Using Your HELOC), you’d want to lend at ~15%. I believe I’d potentially pocket ~$5k, but this must entail a substantial amount of risk and likely 2nd lien position, right? I haven’t found a similar deal that wraps up in under 18 months.
Hopefully, I will find a suitable opportunity and put my home equity to use, but I appreciate PMC and the conversations here if they show me it’s not the right time or I need to do more homework (so to speak) first.