I am considering using HELOC funds to invest, and I'm looking for experiences, thoughts, and reality checks from you folks.
• I can borrow up to $100k at 3.31% (but thinking more like $50k) • The stock I'm looking at pays an 11.25% dividend • The stock I'm looking at is s REIT • All dividends after debt service & Cap Gains would be used to purchase additional shares. • Even after the debt service & the full tax whack, I'm still looking at netting about 2.5%/yr • My model shows that the stock can go down in price by slightly more than a third (lower than its historic low) and as long as it maintains its dividend, I wouldn't lose money (just not make as much). • This is part of of a 10-year plan to put all the money at my disposal into play ("No lazy money")
In addition to your Thoughts, Dire warnings, and pointing out Things I'm obviously missing, I'm also looking for any alternatives I might be overlooking?
(Almost) All .02's appreciated.
Submitted May 03, 2017 at 08:19AM by Tzendo http://ift.tt/2pXHBJv
