I currently have about 400k (appraisal value) in equity on my property. I want to use some of that equity to invest in a MF building in Ohio, but I live in Illinois and the banks I'm talking to will only lend on assets that are in their state.
Any ideas or help?
@Bill Jaqua the solution here is very simple; talk to OH based lenders or lenders that are licensed in both states. You do not generally have to physically go to a lender to apply for a loan
@Aaron K. Thank you! I haven't found anyone in Ohio yet that will loan on a IL asset. Someone licensed in both do you mean someone big like JP Morgan Chase? I've always worked with smaller community banks. Thank you for your help!
@Bill Jaqua you would just refinance your IL property in IL then use those funds as down payment for a new loan in OH. Or someone licensed in both is actually more commonly a smaller lender who specializes in loans only and not bank accounts.
@Bill Jaqua Why do you not get a line of credit on your property to make the next purchase?
@Remington Lyman because I will then be paying interest on the money I use for a downpayment.
My local bank said they'll just put a lien on my house to use that equity without actually charging me interest on it. I Want to use it for 20% down not to pay the building in full
@Bill Jaqua So they said they would use the equity in your house for the down payment and not charge you interest on that borrowed portion for the downpayment? That sounds too good to be true.