HELOC or Equity loan on investment

11 Replies

When i looked into doing this a couple of years ago, home equity had less restrictions than HELOC. And also the type of property makes a difference i.e. non-warrantable condo vs SFR. If you need a lender to talk to PM me as they can give you the best advise.

@Shawn Harvey You could talk to Caeli Ridge at Ridge Lending Group and ask her about the "all in one" loan. It's basically a 30 year HELOC in first lean position for investment properties. You can also find a podcast by Keith Weinhold on YouTube describing it. Here is the link:


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@Shawn Harvey

Lenders typically are not interested in being in second position on an investment property. If you find one that will you better brace yourself for the rate and fees because they are going to be off the charts. You can do a commercial line of credit on a property but that would have to be on a property with no other debt. The only way to pull equity out of an investment property that has a mortgage and get reasonable terms is by refinancing.

Due to recent tax law changes HELOC funds must be used correctly in order for the interest to be tax deductible (no personal use of the funds). Business expenses are still deductible no matter where the $ originated from though, so interest from a HELOC to rehab a rental apparently IS still a legit deduction, apparently.

(not a tax professional, not giving advice, just sharing what I've found online. Do your own research, hire a professional if needed). 

Hey guys, I’m just starting to try to get into real estate investing (flipping homes). Does anyone know of any investment loans that require little down payment (around 10%) at a decent rate?Trying to find a creative ways to get the funds to start. Thanks so much for your help. :)

@Shawn Harvey @Neil Narayan @Axel Meierhoefer you can absolutely do a Line of Credit on an investment property here in Texas.  100% you can.  The lenders are harder to find admittedly but you can certainly find them. Local lenders will be your HIGHEST probability of success when trying to find "Line of Credit" lenders on investment properties. The unfortunate thing here is that investment properties foreclose at a higher rate than primary homes so many banks just don't want the exposure to this. But it is 100% possible to find but you have to put in the time or at least know someone that ALREADY has the connection. Here's my 2 suggestions:

  1. Visit your local REI groups. There are many groups that meet across the country. Some post here on Bigger Pockets. Many post on meetup.com. Networking is always a great practice and you never know who you might meet there and what good information they have to share. Would certainly recommend visiting if one is close to you.
  1. Calling - Which is what I had to do. I had to call about 200 lenders (no exaggeration) to learn of 4 lenders who did this in DFW and I have some tips. First, when calling banks target the smallest most community based banks you can first. If you have never heard of them, and they have one location - that's a good candidate. No big, national, publicly traded banks will do this loan type. Second, try to ask for "LINES OF CREDIT" instead of "HELOC". I know it sounds like I'm splitting hairs but some banks write HELOCs in their residential department....which won't write Investment Properties. And that residential department will often not speak to the commercial department. So they'll just say "sorry, we don't do it"....not even knowing that they really do! So if you ask for a "line of credit on an investment property" that should get you to the COMMERCIAL division. That's the section of the bank we want. Now, most of these smaller banks may only have 12 employees or so. So don't get frustrated if they don't return your call or aren't in the office. Just call back and be friendly. Maybe play dumb a little "I don't know if I'm in the right place..." "I'm sorry to disturb you, you may not be the right person for this....", etc. Maybe someone can get you to the right person. Again, be prepared to call A LOT.

*whew* I know that is a lot but feel free to ask anything additional that you might need.  Thanks!

So I was recently in search of a HML to fund a fix n f

lip that I came across. Most HML said I needed to brinf X amount of dollars to the table...or I not so great stipulations to fund 80-100% of the deal rehab cost included. Since then I was able to full some capital together to buy the property cash. I now need the rehab cost to be funded but NOW most HML are saying there is a minimum to borrow. Being that its only 30k needed most lenders aren't looking to fund this. Is there any groups or places I may have overlooked that can shed light on some options I can compare?