HELP- How to use my existing investment properties as collateral?

Question

I would like to use at least one of my investment properties to get a loan to purchase one or 2 more properties before the end of the year.

I own several mortgage free properties in GA. They're worth about 50K a piece. Are you aware of any banks or lenders who would grant me a loan to purchase 1-2 more investment properties?

Joshua Woolls · Answer

Despite what Johnathan and Alex said, I don't think it is quite as easy as just going to any local bank. I just went through something similar. I have 300k worth of rentals that I own free and clear. I went to about 20-25 banks (the majority local) before I found one that would lend on my properties. I had a few that would lend, but they would only give 50-80k and I was looking for 150-180k. I kept plugging though and finally, one of the banks that I reached out to referred me to another bank where a friend worked. Once I got in touch with this bank it only took about 2 weeks and everything was extremely easy. They also gave me a really solid rate.

I have quite a bit of equity. I have relatively little debt compared to my income. And I have a pretty fair credit score. A couple of times I laughed out loud when I got answers back from banks and they told me their reasons for not being able to make something work... I get it though. Real estate has burned them in the past and they want to make sure they protect their money.

Keep plugging. you will find something. I would literally stop in every local bank I passed for a couple of weeks(I am on the road for my day job).

Alex M. · Answer

Agreed with @Jonathan Towell. It does not sound like it will be too hard for you. Have you spoken to any lenders/banks yet?

Manolo D. · Answer

@Dale Bowrin Try some credit unions.

Joshua Woolls · Answer

Forget the national banks. Look for one of the smaller regional guys. They tend to resell their loans. Because of the unique nature of the type of loan you are looking for, you are going to need a bank that keeps things in house. Credit unions may be a consideration as well.

Dale Bowrin · Answer

Thanks for the feedback. I've reached out to several 'big name banks" in the past but to no avail. I will keep on looking

HELP- How to use my existing investment properties as collateral?

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