Philadelphia, PA · Member since 2016 · 8 posts · 1 vote
Hi Everyone, trying to find a lender who can do a HELOC on a property I own in Philly. The amount should be in the 50-100k range. Normally this wouldnt be hard to find but Ive been having trouble tracking down someone who can work with me because I recently left a full time job to pursue real estate investing. I have very good credit (730) and have about 400k in net worth in real estate currently as well as income off of a rental property. I have found a few portfolio lenders outside of Philly who would entertain this if it wasnt in Philly but somehow cant find anyone in Philly itself to do something like this. Thanks in advance.
Rental Property Investor · Philadelphia, PA · Member since 2014 · 240 posts · 94 votes
9y
@Mark Adler Right now there are not many options to get a HELOC as self-employed. The challenge is banks want income verification, which is typically the last two years of tax returns. If you cannot show income from your new business that is consistent in the last two years, it will be very difficult to get a loan, especially a HELOC.
However, there are other options that I have used in the past.
1. Community banks - Many times if you work with community banks they are more likely to count your rental income in full as business income and you can use that to get the HELOC. In the Philly area there are a number of community banks. Here are a couple you can look into: Washington Savings Bank, Huntingdon Valley Bank, United Community Bank, and Key Bank. I have contacts a couple of them Huntingdon and Key if you need intros.
2. Business unsecured credit - You may be able to get unsecured credit for your business, assuming you have had it for at least two years in business. Key Bank, Santander and Wells Fargo all have programs. I can intro you to people at those as well.
3. Personal unsecured credit - The easiest way to get credit is personal unsecured credit. This is like using personal credit cards to finance your business. You do not need income verification and you high credit score could help. However, it is very complex to understand all of the banks to go to and who will approve you. There is a company I am working now with called Seed Capital that helps you navigate through this process.
Feel free to send me a direct message if you have further questions or could use an introduction. Best of Luck.
Investor · Upper Darby , PA · Member since 2015 · 11 posts · 6 votes
9y
@Mark Adler That's a tough situation. I'm not sure how leaving the full time might affect things, but I know from the local SJREIA group there is @Joseph Scorese. You can look him up, he has a Bigger Pockets profile, I can't post his contact info on here outside the Marketplace. I believe he works at First Trust bank and I believe he said he does Portfolio Lending and Hard Money and know he does loans & deals in South Jersey and Philly.
Rental Property Investor · Philadelphia, PA · Member since 2014 · 240 posts · 94 votes
9y
@Mark Adler Right now there are not many options to get a HELOC as self-employed. The challenge is banks want income verification, which is typically the last two years of tax returns. If you cannot show income from your new business that is consistent in the last two years, it will be very difficult to get a loan, especially a HELOC.
However, there are other options that I have used in the past.
1. Community banks - Many times if you work with community banks they are more likely to count your rental income in full as business income and you can use that to get the HELOC. In the Philly area there are a number of community banks. Here are a couple you can look into: Washington Savings Bank, Huntingdon Valley Bank, United Community Bank, and Key Bank. I have contacts a couple of them Huntingdon and Key if you need intros.
2. Business unsecured credit - You may be able to get unsecured credit for your business, assuming you have had it for at least two years in business. Key Bank, Santander and Wells Fargo all have programs. I can intro you to people at those as well.
3. Personal unsecured credit - The easiest way to get credit is personal unsecured credit. This is like using personal credit cards to finance your business. You do not need income verification and you high credit score could help. However, it is very complex to understand all of the banks to go to and who will approve you. There is a company I am working now with called Seed Capital that helps you navigate through this process.
Feel free to send me a direct message if you have further questions or could use an introduction. Best of Luck.
Philadelphia, PA · Member since 2016 · 8 posts · 1 vote
9y
@Account Closed I reached out to all of the community banks you suggested. Definitely all seem very flexible so even In short term if they still cant do a loan these will definitely help down the road when my income is stronger. Ill talk with someone at Seed Capital as well. Thanks.
Real Estate Agent · Philadelphia, PA · Member since 2010 · 166 posts · 23 votes
9y
@Account Closed I may be looking into a HELOC next month, so I'll try reaching out to Huntingdon or Key. If I cannot reach them I'll DM you for contacts. Thanks in advance!
Rental Property Investor · Philadelphia, PA · Member since 2014 · 240 posts · 94 votes
8y
On other thought. Depending on what you are doing for renovation you should think about options that are unsecured as well for working capital (WCAP) or seed capital. You may even be able to get a low-interest loan against your savings or stock portfolio if you have community bank.