HELOC's for rentals

[Jon Lilley]

Does anyone know of a lender that does business with properties in Buffalo, NY that will do HELOC's on investment properties (owned in LLC's)

I spoke with someone pre-covid on the commercial side at HSBC that did HELOC's up to 60% LTV but they no longer offer that product.
I have a few properties with substantial equity I'm trying to take advantage of without doing a second mortgage.

Thanks in advance

[Doug Smith]

Hi John, A HELOC is a second mortgage. The security instrument is exactly the same in that you have a 2nd lien against the property. A HELOC simply is like a credit card using the property as collateral where an installment loan is a fixed-term product. The installment loan 2nd mortgages are a bit more aggressive in the amount that they will lend right now vs a HELOC, but on an investment property, that usually caps out at about 70%ish. I do hope that helps.