Yesterday I finally closed on a blanket loan for 6 properties at 65% ltv and cashed out on some equity. My question is, is there a way/what are the options of leveraging the 35% equity in properties, so that I'm able to continue to grow and have more flexibility? My credit is solid at 740+ , properties cash flow very good and I work a full time w2 job. Looking to get more buy and holds and try some flips.
Find a lender that'll blanket the loans at 75% LTV haha...
Find a lender that will access your portfolio and the strength of it. You are in a great position with 65% LTV. Ask them to give you a 15-20% line of credit unsecured based upon the strength of your portfolio. This way it is "unsecured" and they will not want to take a position on your properties. Or go back to the bank that just did the 65% LTV since you have a relationship with them now and ask them for a line of credit. Pitch it as, each property you gain, they will be the ones holding that mortgage. So its a win/win situation.
So if your portfolio is worth $200k, ask for a $30-$40k credit line. I might tell them if they are hesitant that when you secure a property and utilize the credit line, they can have a position on the newly acquired property and then free up your credit line for rehab or the purchase of another property.
good ideas...I will inquire about business line of credit. Thanks!
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