I have 2 rentals and one primary home. Substantial equity built in all three properties looking to connect with banker/lenders for HELOC loans with best interest rates to expand my portfolio.
All in Minnesota. yes they all have debt with equity.
Hi @Ravi Gupta - we may have a few options available for you and also have connections at a few local banks we refer to when we aren't the most competitive. Feel free to give me a call to connect.
I have 2 rentals and one primary home. Substantial equity built in all three properties looking to connect with banker/lenders for HELOC loans with best interest rates to expand my portfolio.
It's often better to get more leverage than worry about the best rate on a HELOC. For example, a typical lender offers 90% CLTV on a primary residence. This amounts to an additional 20K on a 400K house. That additional 20K is can lightly remodel two units of a duplex or do a moderate facelift on one unit. If your new property needs a remodel that rent bump alone justifies a .25% difference on 100K. This is a quick example, but there are many great reasons to have a HELOC, the idea to understand is that they are cheap money compared to the options that come after. Meaning, that cash is most affordable, then first mortgage, then HELOC. After that, you are typically looking at Private Money loans, Hard Money Loans, and the most expensive money a partner (typically 50%).
Put another way, if you're looking for a HELOC to remodel your primary residence or to pay off credit card debt, you should look for the cheapest loan that meets your needs. If you're using HELOC money for investing you should look for the highest possible CLTV (Combined Loan to Value) and then look at costs.
The best lender I know of for 95% is also typically the cheapest rate lender, I use but they are also higher on closing costs than others. In the end, they make me more money than the cheaper loans and consequently more profit, I'm focused on profit not costs.
My wife brokers investment property loans to 75% and I broker primary HELOCs to 95%