OfflineHello DG Family,
In reading Dean's books, one way to generate funds was to get a HELOC. Use it for your deals and when you make money off that deal, pay back your HELOC. I thought this was a great ideal, use the equity on your home for your down payments etc.
So I started calling around looking for a HELOC. I have about 30,000 to 40,000 of equity. I started with my lender, Bank of America. They made the requirements so difficult that you could not get a HELOC. Then they said that they are not doing these types of loans/line of credit anymore.
I called about 10 more lenders and they all said the same thing, we're not doing this type of line of credit anymore or so said they would only do 50-60% lines of credits, which means I can not use the equity on my property. What good is equity if can't use it? I still think using your equity is a great ideal, but it seems like the lenders don't think so. I hope I'm wrong.
Any help, advice, on where you can get a HELOC at 75-80% LTV would be greatly appreciated.
Thanks,
Mike R
Thanks for posting this! I look forward to the replies you receive.
Thanks again!
Louisa
Current Journal on Dean's site: The Second Chapter: http://tinyurl.com/p986al3
First Journal on Dean's Site: From the Beginning: http://bit.ly/ocv10
My HELOC through BOA is at 75% of value. I opened it about 18 months ago.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
We did a HELOC with our community bank in Jan. We started with 75% but they increased to 85%in Junes so I could use it. Check with your community banks. My Mortgage broker told me he could do it too. Keep calling.
Cathy
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
Louisa, Thanks a lot! I am so glad to be part of the DG family. I look forward to getting more replies and info that will help me and others get a HELOC. I will also be catching up on your journal today. I see that you have a done deal. That's great! I'm happy for you, you truly deserve it!
Thanks,
Mike R
BOA must have changed the game, because I talked to a guy yesterday for a half hour and he told me several times that 50-60 %LTV was all that they would do. Maybe I talked to the wrong guy.
Thanks
Mike R
I am currently working with a community bank that helped me get my investment property, this property is for sale or for rent. Before I started rehabbing I asked them could I refi at 75% LTV. They said yes, no problem. Once I finished rehabbing it and went to them for a refi, they got real nervous and asked me if I was having money problems. Going to them for a HELOC, might cause me more problems. What do you think? I also would like to refi my investment property, this way I could pull some cash out and still rent it for some positive cash flow. Still looking to refi this property, have not found funding yet.
Thanks for your help.
Mike R
Is your loan backed by Fannie Mae? I heard on the news yesterday that Fannie Mae just started a program Called the "PRP" Payment Reduction Plan. I heard they will finance investment properties as well. You can watch the information on this link.
http://realtytimes.com/ to hear about it.
CM
Try a local community bank or credit union. I know of a couple of invetors in my investment club that uses US BANK.
I was planning on getting a heloc, the deals are showing up more and more. Is there a way to approach these banks, lenders etc. for them to work with you more easily. Any tips, techniques out there??????????????????