Bank in Kansas City area... HELOC needed.

14 Replies

Hi, 

I need a bank that knows how to deal with RE investors. I have a few rentals and all my income is from the rentals... but I have several deductions every year and end up with "paper losses". I tried all kinds of banks, big banks (Bank of America, Wells Fargo) small banks and credit unions, but as soon as my application is forwarded to the underwriters department my taxes cause the application to be denied. My credit is excellent 800+, monthly cash flow is good, no credit card debt, cash reserves.. only a couple of RE loans. Its a VERY frustrating situation. I would like to establish a HELOC on my home or rental property. Thanks.

Originally posted by @Luther Wilson III :

Hey @Carlos C., we're here in KC and have some recommendations for people who might be able to assist you.

Great... please post info to call them as well as for other members to see. Thanks.

 

Hey @Carlos C. , here ya go:

Here are a handful of local, investor-friendly, lenders:

1. Argentine Federal Savings

https://www.argentinefed.com/
12501 Antioch Road
Overland Park, Kansas 66213 

2. Andy Greenstein at Guaranteed Rate

https://www.rate.com/loan-expert/andygreenstein

3. Jeff Basler at SLS Financial Services

https://slsfinancial.com/

4. Charlie Fitzgerald at REI Investor Funds

https://www.reiinvestorfunds.com/

5. Beth Langston at Flat Branch Mortgage

https://www.flatbranchhomeloans.com/team/beth-langston

Best of luck to ya! If these lenders aren't able to assist you then they should at least be able to point you in the right direction.  :)

I will contact these companies tomorrow and go over my tax situation... hopefully one or more can help me with a HELOC. Thank you for the referrals.

Hi... I would like to establish a HELOC, credit score is 780 (average), home appraised value is $280K, current mortgage is $80K. All income is from rentals... taxes show paper losses due to deductions...so far underwrites are not able to approve loan. I need and underwriter that deals with investor and rentals.. any suggestions? Thanks.

@Carlos C. Where are the underwriters saying the problem sits? Are all the underwriters denying for the same reason?

When you back out "paper losses" like depreciation, interest expenses, etc. How much income are you bringing in? The underwriter should be counting 75% of that income as your annual income towards a loan.

They will look at how much money is in the bank that is generated from the properties every month, it's okay to have a paper loss, but if the bank accounts aren't increasing at the end of every bank statement, you aren't making any money in the eyes of the underwriter.

Are you paying yourself from the income/cashflow? If so, the underwriter does not view this as a part of your "paper loss", unless you get a W2 to replace that income usage, it counts against you in underwriting.

A 5th bank is reviewing my taxes tomorrow... Ill post in a few days.

Banks don't make much on HELOCs, I think this is the main reason they are "denying" the loans. One loan officer, said that they only do HELOCs if the client is using the proceeds to fund a purchase.

Originally posted by @Michael Nguyen :

@Carlos C.

Hi Carlos. I'm in a similar situation except I have income from a day job and my house is fully paid off. (Value at 126k). I'm looking to do an HELOC. From the banks you've spoken to, which one do you think I should approach?


Try this one... I can not suggest one over the other...all were not very helpful. This one took the time to "help" a little more... but said he was going to forward my info to a bank that he said should be able to help me... but he never did.. called him a couple of times and did not returned my call. 

2. Andy Greenstein at Guaranteed Rate

https://www.rate.com/loan-expert/andygreenstein

Good luck.