Investor · Las Vegas, NV · Member since 2018 · 35 posts · 5 votes
Howdy. I'm looking for a Home Equity Agreement partner, who works with investment properties in Tennessee?
A Home Equity Agreement is not a HELOC. It is my understanding that HELOC lenders do not work with 2nd homes and investment properties. At least, I have not been able to find one. If you know of a HELOC lender who does work with investment properties in TN I'd love any referrals.
HOME EQUITY AGREEMENT
In case you are unfamiliar with the product, a HEA partner writes a check in exchange for a percentage of equity in the property, secured by a lien, that is satisfied at some point in the future (say 10 years) through either sale of the property or a ReFi. The HEA partner is not receiving monthly payments. They write a check, and are re-paid per the agreement upon sale or refi of the property.
I am familiar with unlock.com
Can anyone recommend other Home Equity Agreement companies or individuals who do business with investment properties in Tennessee?
Lender · Charlotte, NC · Member since 2022 · 739 posts · 410 votes
4y
Hi @Steven Joseph Fogarty, there are HELOC lenders for second homes and investment properties. Someone made a list HERE.
The list is not completely up to date. Some of them no longer offer them but if you call around, you will find some good options.
You can also consider getting a HELOAN. It is essentially a second mortgage. It is a fixed-rate, fully amortizing loan that goes in second position behind your current mortgage.
If you would like a referral for a HELOAN, please let me know.
Hope this helps! Let me know if I can be of any assistance.
Lender · Franklin, TN · Member since 2026 · 28 posts · 2 votes
2h
Retail HELOCs dying on a TN investment/2nd-home cabin is normal — most consumer HELOC boxes are owner-occ only. Before you jump into a Home Equity Agreement (expensive equity sale), price a rent-based cash-out or a true investment HELOC/2nd from a business-purpose desk; those underwrite the cabin's rents/LTV instead of your W2 HELOC scorecard. Read the HEI share-of-appreciation math twice; a slightly higher-rate DSCR cash-out is often cheaper than giving away future equity.