Best HELOC rates in California

[Hashmat B.]

Hello all, I currently have a checking and savings account with Citibank. I want to obtain a Heloc loan to have more cash to BRRRR. I have 50k in savings and would like to obtain a line of credit for 100k giving me total of 150k to invest with. I will only pull what I need from the 100k line of credit. I want to purchase my first out of state investment rental property to BRRRR with this money. I currently live In the SF Bay Area in California. Anyways I just completed my application. Citibank offered me the following: 3.99% variable for 12 months, then 5.49% to 5.99% once the credit check and further details have been processed. There are no closing costs as long as the account is open 3 years. No annual fees. Once I refinance the BRRRR’ed property I will pay the heloc off right away. My question is, is this a good rate? Are there better deals out there? I have checked with US Bank and Bank of America but the differences were not significant enough for me to open an account with them. Just making sure I don’t have any regrets.

[Jonathan Pflueger]

@Hashmat B.

Real Estate is all about relationships... With that said, I like to use small local banks for as much of my real estate needs as I can. In this way, I can create direct relationships with lenders that work and live in my community. When I walk into a local bank they automatically know me and more often than not the person that takes my application and interviews me is the person, or one of the persons, that will be deciding whether not I get the loan. 

I say that cause if the loan products offered from both types of banks are similar I always go with the smaller bank and "bank" (forgive the pun) on the future relationship I am building. With national banks you are just a number and more often than not, not a very big number (at least in their calculation). 

Jonathan