Leveraging my property

[Todd Lansden]

Hello, recently I purchased two homes cash. The first is currently being rented while the second needs to be renovated. I want to somehow leverage my first house to fix up my second. Is it possible to leverage/get a loan on a property you purchased all cash?

[Kristin Kiddy]

Yes.  It's called a cash out refinance.  Call around to different banks, a smaller bank may be more flexible if this was a recent purchase.  You will either qualify for the loan on your personal income or you may be able to qualify on the property's performance.  

[Todd Lansden]

Quote from @Kristin Kiddy:

Yes.  It's called a cash out refinance.  Call around to different banks, a smaller bank may be more flexible if this was a recent purchase.  You will either qualify for the loan on your personal income or you may be able to qualify on the property's performance.  

Thank you so much! I will defiantly check that out!

[Eliott Elias]

Absolutely, take out a HELOC. Talk you your lender and see what it takes to make it possible. They usually want to see the property stabilized before they loan you the money, takes about 6 months. If it is an investment property they will give 75% LTV

[Todd Lansden]

Quote from @Eliott Elias:

Absolutely, take out a HELOC. Talk you your lender and see what it takes to make it possible. They usually want to see the property stabilized before they loan you the money, takes about 6 months. If it is an investment property they will give 75% LTV

 Thank you so much! With that, the loan is based on equity. Due to me purchasing the property all cash would I have equity in the property?