Cash-Out Refinance For 2nd Home

[Paul Moersen]

Bigger pockets - I’m building a spec home and funding w heloc.  The home will be finished it February and exploring doing a cash out refi and renting the new build out, if market isn’t favorable.  Where can I find a good cash out refi lender where I can put as less $$$ down as possible w good rates?  

[Lisa Wright]

After 30 phone calls I found Discover loans.

im pulling a home equity to use as a bridge.  

i have extenuating circumstances so basically start calling around and see what will work.

[Paul Sofia]

Don't use your property as an ATM.  A common mistake aggressive make.  The market grew way too fast in a short time.  Now we see declining values.  I've seen this show before but this time will be much, much worse.

[Jared Rine]

@Paul Moersen...if I'm understanding your posting, the home will be free/clear because your use of the HELOC to build? If that's the case, what type of leverage on the new spec home were you looking for and/or what could you be comfortable with? What type of market rents would the property command? I'd like to hear more.

[Kerry Baird]

@Lisa Wright why Discover?  Are you getting a secured line of credit?  And how are you going to use that to build your real estate business?

[Lisa Wright]

Quote from @Kerry Baird:

@Lisa Wright why Discover?  Are you getting a secured line of credit?  And how are you going to use that to build your real estate business?

Because I'm strictly 1099 since Feb and most loans require you to have 2 years of tax returns or a guarantor.  But the guarantor needs to live in the home.   So that is the path I found where all the rules worked.  It was annoying because before real estate was I doing property management for a company but they will not count that. 
I'm pulling an home equity loan to purchase a second with cash.  I will sell this one and then own outright with cash left over to invest in a new spot.  Rehab, sell, repeat. 

[Drew Sygit]

Check local banks