I am looking for some guidance on a current issue. I have an investment property that I need to pull equity out of. I asked for some financing to purchase and rehab it and now it is coming due.
I wanted to get suggestions on how to pull equity from the property. I own the property outright, but I only had it for 3 months. I know that I can't get a mortgage on it or a line of credit until I had for 6 months minimum (Texas). I know I could flip it, but I rather keep it as a rental.
Any suggestions on how to pull equity out of it?
I would appreciate any help or guidance!
Originally posted by @Jaime Arredondo : I know that I can't get a mortgage on it or a line of credit until I had for 6 months minimum (Texas).!
You write that as if it is a TX law but my guess is it is simply the requirements of the lenders you have approached. Generally smaller banks and institutions will have more flexible requirements.
Possibly a hard money lender would do a short term loan with the goal of refinancing them out later. Or perhaps a private lender, friends family or associates, that you could use the property as collateral. If you have a personal home maybe you could use this as additional cross collateral for a home equity line.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
i heard on podcast #116 in the intro (minute 3:45 into it) about B2R finance. They offer loans for rental investors. Check them out. Hope that helps.
Thanks for the reply @Ned Carey !
Maybe you are right and it is the lenders I talked to. They all stated they can't lend unless I have owned it for 6 months. I will have to keep asking other banks.
The other option I hadn't considered was the hard money lender. I haven't looked into one and maybe it is the answer I am looking for (at least in the short term).
I will keep you updated.
Thanks @David Morgan !
I appears that B2R finances on amounts greater than what I need, but I will still ask!
Thanks for your suggestion!
On a side note: I found that "Delayed Financing" is an option too, but I can only get as much as I paid for it and not the new appraised value.
Delayed financing......uhm..another new idea to learn about. There is always something to learn.
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