How do I do a cash out refi/heloc/LOC on this house?

Question

I have a 3/1 in West Baltimore that I bought on owner finance at 10% and had the wholesaler finance her fee as well. I just repaid the wholesaler and can now refinance. How do I get cash out of the property? I bought the house when it was tax value appraised for 55K, then had it contested to 30K. I gutted the whole thing, everything in the house is new. Houses in the area with similar levels of rehab are selling for 50 - 75K. I own $7500 on this house.

How do I get money of this house and drop the interest that I'm paying?

Shar Day · Answer

Try your local credit unions, they are not as uptight as the commercial banks.

Rob Beland · Answer

@Alex Khojainovyour best bet is a local bank with a commercial lending dept. Thats a pretty small loan for most banks but a local bank may keep it in-house. Being an investor you should have that type of local banking relationship regardless of current needs.

Bill Struthers · Answer

That may present an issue. I was in a similar situation last year with one of my homes under an LLC. I went to M&T Bank to attempt to get a HELOC/HEL. The short story is that because it's in an LLC, it would need to be a business loan and the bank didn't have any business loans for that amount/type of product. If it had been in my own name, they could have proceeded with a HELOC as normal.

Bill

Alex Khojainov · Answer

I own the house through an LLC, the seller has a note on it for $7500 that I pay monthly on.  Any ideas on how much of the value I can get out?

Shaniqua Dupree · Answer

do you own the house outright?

Shaniqua Dupree · Answer

go to a local bank or contact a mortgage loan officer and ask about their refinancing programs as well as line of credits. You may get some useful info on assessment and taxation from the marylands website. I tried copy and pasting the link but this came up "this HTML class. Value is http://www.dat.state"

I read that if you did not agree with the assessment that was mailed to you that the state will NEVER charge you for appealing it. Idk if thats helpful though.