HELOC on Investment Property?

Question

I'm looking for a way to pull cash out of a SFH I have on a LTR to invest in other real estate deals. I don't want to do a cash-out refi due to the fact that it's got a 3% interest rate on it right now and bringing in $800/mo. Any lender recommendations or advice on this?

Thanks!!

* I am a lender, we don't offer any sort of options or solutions for what I am wanting to do and I cannot broker this out with my company.

Thanks!!

* I am a lender, we don't offer any sort of options or solutions for what I am wanting to do and I cannot broker this out with my company.

Andrew Postell · Answer

@Lauren Rodriguez Hmmm, so you definitely have space there but I don't know any lenders that are doing a 2nd position HELOC on an investment property right now.  Not saying you can't find one...but it might be pretty hard.

A small, local lender 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.  Here's my 2 suggestions:

• Visit your      local REI groups. There are many groups that meet across the      country. Some post here on the Bigger Pockets Marketplace. Many post on      meetup.com. Even facebook will have some.       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.
• Calling - and then      there's this option. Which is what I had to do. I had to call about 200      lenders (no exaggeration) to learn of 4 lenders who did this 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

Certainly hope you find something out there.  Don't forget about this strategy too:  https://www.biggerpockets.com/...

Edward Tindale · Answer

Hi @Lauren Rodriguez. I would reach out to @Raymond J. Rodrigues for suggestions on this situation. He's has a lot of experience with HELOCs.

Lauren Rodriguez · Answer

Very insightful, I appreciate your input and will start on that route!

Joseph Lalia · Answer

This. Also try Bigger Pockets host David Greene's The One Brokerage. They began offering these recently.

Lauren Rodriguez · Answer

It was appraised last year for $425,000, I owe $234,000~ on it.

John M. · Answer

TD bank can do a HELOC for you.

Andrew Postell · Answer

@Lauren Rodriguez what's the value of the home right now? And about how much do you owe?

Raymond J. Rodrigues · Answer

Hi @Lauren Rodriguez, feel free to reach out to me. Happy to help provide you with some solutions!

Devin Peterson · Answer

I can connect you with a product for that. Send me a PM

HELOC on Investment Property?

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