All Forum Posts by: David Garcia

Good Afternoon everyone. I was wondering if anyone has had any luck recently accessing equity they may have in their properties. I have two investment properties, one with about $100k of equity based off an appraisal we just did, and another with about $200k in equity. I am trying to access the equity in either, or both, to grow my portfolio. I also have my primary which has around $100k but we are almost done with a pool addition and then going to get it appraised to get PMI taken off. We figured we may as well wait for the pool to be completed for the extra cushion because I've seen that appraisers are being extremely conservative right now. We'll get it appraised and then that can be an option in about 2-3 months when the pool is done.

I can't find anyone that is doing HELOC's on investment properties. I did find one but they'll only do 70% LTV and they use a software to appraise the homes which is coming in fairly low. I don't mind paying the fees and such, but would like a little higher of an amount so that I can do more with it and make it worth it.

I don't want to cash our refi due to obvious reasons and having low interest rates currently. I was actually in the process back when it was around 6% on the appraised property mentioned above, but the appraisal came back a little lower than what we were expecting and after fees, points, etc. it again wasn't really worth it. 

I'm starting to wonder if that is just one of the struggles nowadays that everyone is going through, if there are other lenders that are offering some options, or a creative solution I'm not even aware of.  Trying to raise private capital as well but regardless I'd love to access all the equity if possible anyways. 

Thanks in advance! 

@David Garcia Fyi, I recently applied for a Heloc with Figure and they said they are currently not offering helocs as an option in my area(Tampa)>

 Let me tell you how much I agree with Kerry on this one lol. Figure is super good! give them a shot. 

Mortgage Lender here: it's fine if the down payment for the new property is from a HELOC/HE Loan. There is no requirement that the funds need to be seasoned. Down payment funds just can't be from a unsecured loan (personal loan/credit card). Any secured loan is fine as long as we have the documentation. I'm happy to answer any other questions on that you might have.

@David Garcia

You'll get denied for both your HELOC and your loan on the MF if you use those terms. HELOC bank doesn't want their line used as a term loan on real estate they don't have collateralized and the bank that you apply for a loan for doesn't want your down payment to be borrowed.

If you wanted to get the HELOC for home improvements then decide to draw on it for liquidity, had it sit in a bank account for a couple months and then applied for a MF loan and used it as the down payment, you'd have to answer no to the question, "is any part of the down payment borrowed". But if that answer was no, then you wouldn't get denied for the reasons mentioned previously.

That being said, try elements.org/spedersen. You can tell Shaneka I sent you and ask her real questions. She's a great resource to get some information on getting a HELOC.

My money guy paid everything at the end of each week, kinda like a Cost Plus deal. I charged a minimal fee like $1000 week for my time. Then at the end, we split everything 50/50.

But.......I was a really experienced, really high end GC, with my own crews and subs that I provided. That's what made it worth 50/50 to him. If you're not able to be/do that, then I would think the split would be more like 60/40,  65/35, 70/30....

When I have done it, I was the GC and my partner was the money guy. I handled EVERYTHING except the money and we split the money 50/50.

YOur deal sounds different so see what others say about how to split.....