While attending the University of Guelph, Scott McGillivray took out a home equity loan during his last year of studies. The Financial Post had a great article about McGillivray’s story.
First, Scott spent every penny of his student loan to purchase a house with his friend Mike Sarracini. The two guys lived in the basement of the house, and rented out the rooms upstairs to friends. Then, once they realized the earning potential, they took out a home equity loan on the first house to finance other houses. Today, McGillivray owns a total of 29 properties.
This entire property business venture was made possible because McGillivray realized the potential of a home equity loan. The first house was financed solely by McGillivray’s student loan which is one source. But then he realized that the house had value in it and therefore he was able to take a home equity loan out to finance the second house.
For the average person who is not risky business minded, a home equity loan has many other advantages. For example, if a family wants to take a vacation but does not have the finances in the bank to do so, then taking a home equity loan is an option.
