HELOC on owner financing

12 Replies

BP family, 

I just purchased a home through seller financing. I have a great amount of equity in this deal. I want to do a HELOC on this investment property; however I am not sure if this is possible. Has anyone done a HELOC for a home that was owner financed?

Thanks in advance for your replies!

Doug

@Douglas Harris

Okay. They definitely don't like doing them for LLCs. the problem is that banks stopped doing them because of the liability. The LLC can become insolvent and there's no one to go after.

But nothing is impossible if you shop around hard enough. You should speak to a few local lenders and see if they have a product that might work for you. They might be able to offer a business line of credit, as an example.

I wouldn't use the term HELOC. I would say I want a buiness line of credit secured by real estate.

@Ned Carey This is true. One bank said no to a HELOC but would give me a line of credit secured by the property. I found this to be interesting. How's investing in Baltimore? I'm not too far from out from your market.

@Douglas Harris I love investing in baltimore. But it is hard to invest from a distance. neighborhoods change very quickly here. Unless you want to spend the time coming up here it can be quite risky.