HELOC for investment properties 2 to 4 units

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HELOC for investment properties 2 to 4 units

Timothy Taylor
Real Estate Investor · Chicago, IL · Member since 2016 · 12 posts · 13 votes

I have 3 properties low leverage and looking at exploring getting HELOC's on them. These are all investment properties that are between two and for units in Chicago (northwest side). Value of properties range from $550k to $1.3M.

Any lenders lending on HELOC on investment properties? Would love to connect or an intro would be greatly appreciated.

Thank you,

Tim


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Susan Chagalian
Lender · Los Angeles, CA · Member since 2008 · 35 posts · 9 votes
3y

We offer both HELOCs and HELOANs (closed end loans) on investment properties 1-4 units and possibly other types with exception. Can you please give me the figures on the current mortgage balances and I will prepare a comparison quote for you. Please note that our company, Barrett Financial Group, LLC, is licensed nationwide but I am licensed in CA. However, I can also help investors in several other states for investment proeprties only.

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  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    3y

    @Timothy Taylor are you looking for 2nd position HELOCs on investment property? I am pretty sure that doesn't exist, at least not today. You would probably have to have no debt on the properties. @Joshua Jones might know if these exist? I doubt it though, or I would have heard of it by now. 

    0Reply
  • David Lambert
    Member since 2022 · 41 posts · 20 votes
    3y

    I dont know of any lender doing second position HELOCs either. I would love to know if anyone is doing it because I could surely send people thier way. With rates where they are, I get a lot of calls from people wanting to pull equity out of thier property but not wanting to let go of the lower interest rate debt already on the property. 

    0Reply
  • Dennis Muno
    Lender · Denton, TX · Member since 2023 · 349 posts · 80 votes
    3y

    Hello Timothy,

    I would say that you should compare multiple HELOC offers from different lenders before you proceed. The more lender options you compare for HELOCs the better

    1Reply
  • Joshua JonesPro Member
    Member since 2020 · 70 posts · 32 votes
    3y

    @John Warren thank you for the mention. @Timothy Taylor this is a product that in today's world does not exist. If a lender out there does it, my guess the rate is brutal. Like credit card rates. The heloc product is by definition a primary residence product. Your best bet is cash out, 30 year money. Don't stress about it too much as the tenants are paying the costs and rate to get the money out. To you, you want the cash out to go invest. That is more important. Message me if you have any more questions. 

    0Reply
  • Lloyd Preece
    Rental Property Investor · NJ · Member since 2020 · 57 posts · 53 votes
    3y

    Only seen HELOCs on primarys, however i do remember David Green saying his team had HELOCs on rental properties a few weeks ago so maybe look at his lending business

    1Reply
  • Susan Chagalian
    Lender · Los Angeles, CA · Member since 2008 · 35 posts · 9 votes
    3y

    We offer both HELOCs and HELOANs (closed end loans) on investment properties 1-4 units and possibly other types with exception. Can you please give me the figures on the current mortgage balances and I will prepare a comparison quote for you. Please note that our company, Barrett Financial Group, LLC, is licensed nationwide but I am licensed in CA. However, I can also help investors in several other states for investment proeprties only.

    3Reply
  • David Shifirn
    chicago · Member since 2017 · 10 posts · 3 votes
    3y

    @Susan Chagalian

    I owe 600 k on a 4 flat worth 1.35. It has 30 ur fixed rate of 3.5%. Your saying you could give me a heloc on the equity? What rate?

    Thx

    0Reply
  • Timothy Taylor
    OP
    Real Estate Investor · Chicago, IL · Member since 2016 · 12 posts · 13 votes
    3y

    Thank you to everyone for responding!  @Susan Chagalian and @Dennis Muno I've reached out to you both to learn more.  I saw the podcast just yesterday that @Lloyd Preece that David had on HELOC's on investment properties. I reached out to his team and he can only do it on single family rentals. Thanks again everyone.

    0Reply
  • Susan Chagalian
    Lender · Los Angeles, CA · Member since 2008 · 35 posts · 9 votes
    3y

    A few of our investors offer home equity lines or loans on investment properties of 1-4 units.  The equity lines are based on Prime, which is now 8.25%, plus margin.  The margin is determined by your credit score, loan to value, and income documentation types.  I have seen margins as low as 3% and as high as 6-7%.   The home equity loans are fixed rate programs and only allow a single unit or a duplex investment properties.  The terms are range from 10, 20, or 30 years.  There are also certain guidlines that vary from state to state plus the investor specific overlays.  The $$ amounts may be as high as $500,000 and, again, depending on the investor, the total combined loan amount on each property is based on the investor guideline.  Hope this helps.  But please send me the specifics of your scenario and I will be more specific.  

    0Reply
  • Susan Chagalian
    Lender · Los Angeles, CA · Member since 2008 · 35 posts · 9 votes
    3y

    That is correct.  The home equity lines on 1-4 unit investment properties are based on WSJ Prime, which is 8.25% now, plus a margin.  The specific pricing on each proeprty is determined by loan to value, credit, income, (although some allow alternative methods of documenting the income), the investor specific overlays, and the state guidelines.  One of our investors offers fixed rate home equity loans with terms ranging from 10, 20, to 30 years.  But those are limited to single units or a duplex on investment properties.  The max $$ amount I have seen so far is $500,000 but that can vary from investor to investor.  Please  let me know the specifics of your property and I will get it priced more accurately.  

    0Reply
  • Alyssa Fiore
    Clearwater, FL · Member since 2023 · 5 posts · 3 votes
    3y

    @Christopher Harris should be able to help

    0Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    3y

    Sounds like you are on to something @Timothy Taylor!  What are your plans after you can secure some cash?

    More investing on the NW side of Chicago?

    [email protected]
    Quality Builders4.968 Reviews
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