All Forum Posts by: Ryan S.

Hi @Kevin Lefeuvre, sorry but I do not recall.  I think everyone was "Prime plus x%," maybe a point or two?  I remember there was a higher cost because it wasn't owner-occupied.

Hi everyone,

For the purposes of a 1031 Exchange, is the basis value:

a) the value when I purchased my condo (owner-occupied)

b) the value of the property when I moved out and converted it into a rental investment property

I have always assumed the answer was (A) but had a conversation with someone yesterday who suggested I look into this.  We lived there for three years, and the value climbed during that time.  If, in fact, basis should be the value when it was turned into a rental, I wouldn't be on the hook for the gain that occurred while we lived there.  This could be material in terms of our decision to do a 1031 or not.

Our taxes for the past three years have used the purchase value, but if it's possible to use the value upon conversion, I would look into amended returns for those years to correct basis.

For a SIMPLIFIED example, imagine value was $300K upon purchase, $400K upon conversion, and $500K now.  I sell today, is my basis $300 or $400?  A gain of $100K vs. $200K would be a real difference.  

Hi @Naveen Koorakula,

Most of the conversations didn't get that far. The subject property was valued around $400K, and I was looking to get at least $20K on the line. Cap on the HELOC size was never in play as an issue in my situation, so I didn't take great notes on that.

Here's what I do have:

• California Coast CU: $10K minimum line
• Fremont Bank: $25K minimum line
• Wescom:  $250K max line (@Stanley Diaz, any confirmation on that number from your end?)

Hope that helps!

Hi Ronnie, glad it's helpful.

Let us know if you find anything different (or if guidelines have changed with any of these guys since I called).

Hi Everyone,

I recently went through the process of setting up a HELOC on an investment property in California. Called maybe 50 banks and credit unions, and as you probably know, not a lot of people will do this right now.

I found a few who will, so I thought I'd post results here and maybe save someone the initial legwork.

They have various terms, conditions, etc., but I don't necessarily have all that info.  My goal here is just to give you the starter list for who to call.

This is relatively current (calls made between 3/23/2017 and 5/23/2017) and again, for a non-owner-occupied condo/townhome investment property in California.

Hope this is helpful for somebody out there!

Ryan

Banks/CUs Offering a HELOC Product for NOO Property in California

• Bank of the West (I think they will do this for a single family, but not for a condo/townhome)
• California Bank & Trust (up to 55% Combined LTV)
• California Coast Credit Union (70% CLTV)
• East West Bank (60% CLTV)
• Fremont Bank (65% CLTV)
• Pentagon Federal Credit Union (70% CLTV)
• SAFE Credit Union (70% CLTV)
• Union Bank (up to 65% CLTV)
• Wells Fargo (up to 60% CLTV)
• Wescom Credit Union (70% CLTV)