Quick question did you do these HELOC on investment properties and do you see the LTV going back to 100%?
Yes, I used this strategy for the apartment complexes.
I think some lenders will do 100% eventually. It isn't extremely common but its likely you will see it. It also depends on how much equity you have in your home. Some lenders do have a maximum amount.
Credit unions are usually have better terms and are more flexible than banks from my experience.
Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
3y
@Anthony Freeman - Yes, I got a $50K unsecured LOC from a small local bank for one of my LLCs. It's a rare product for sure, but they are out there. Mine was a simple one page application where they asked for the LLCs revenue etc and did not verify much. Usually, they offer LOC for like 20-25% of the company's revenue. The bank I used was a small bank in CT called Liberty-Bank. I hope this helps!
@Anthony Freeman - Yes, I got a $50K unsecured LOC from a small local bank for one of my LLCs. It's a rare product for sure, but they are out there. Mine was a simple one page application where they asked for the LLCs revenue etc and did not verify much. Usually, they offer LOC for like 20-25% of the company's revenue. The bank I used was a small bank in CT called Liberty-Bank. I hope this helps!
Thanks do you have any experience such as a homeowner using their home as collateral so the bank can grant you a business loan? I have been doing some reading lately looking for real life examples thanks in advance.
A lot of lenders offer HELOCs at 80% or higher LTV. A couple of years ago, lenders would offer 90-100% LTV.
Most banks and credit unions offer HELOCs and Home Equity Loans. Some offer different products like principal + interest, interest-only, fixed rate vs variable rate, or different LTVs. I personally stay away from HE Loans (called 2nd mortgages) because I can't re-use that capital llike I can with a HELOC.
A few years ago, we had $97k in equity and a 100% LTV HELOC. We were able to use up to $97k in the line of credit. We used it to get into 2 apartment syndications initially for a total of 6 syndications in the last 3 years.
Nowadays, the LTV would be 80-85% but that depends on the lender and how much equity you have.
A lot of lenders offer HELOCs at 80% or higher LTV. A couple of years ago, lenders would offer 90-100% LTV.
Most banks and credit unions offer HELOCs and Home Equity Loans. Some offer different products like principal + interest, interest-only, fixed rate vs variable rate, or different LTVs. I personally stay away from HE Loans (called 2nd mortgages) because I can't re-use that capital llike I can with a HELOC.
A few years ago, we had $97k in equity and a 100% LTV HELOC. We were able to use up to $97k in the line of credit. We used it to get into 2 apartment syndications initially for a total of 6 syndications in the last 3 years.
Nowadays, the LTV would be 80-85% but that depends on the lender and how much equity you have.
Quick question did you do these HELOC on investment properties and do you see the LTV going back to 100%?
Yes, I used this strategy for the apartment complexes.
I think some lenders will do 100% eventually. It isn't extremely common but its likely you will see it. It also depends on how much equity you have in your home. Some lenders do have a maximum amount.
Credit unions are usually have better terms and are more flexible than banks from my experience.
Quick question did you do these HELOC on investment properties and do you see the LTV going back to 100%?
Yes, I used this strategy for the apartment complexes.
I think some lenders will do 100% eventually. It isn't extremely common but its likely you will see it. It also depends on how much equity you have in your home. Some lenders do have a maximum amount.
Credit unions are usually have better terms and are more flexible than banks from my experience.