Having trouble pulling equity from an investment property

[Christopher G.]

Hey everyone. I am trying to take a loan, HELOC or Home Equity, on the equity that I currently have in an investment property, own 4 total. Two banks have turned me down. PENFED said that they won't give HELOCs/Equity loans on investment properties when you own more than 3 and Chase said they only give up to 50% loans on investment properties if they get an exception to loan on an investment.

I thought this was part of the BRRRR method? Question I have is how do I pull the equity, about 100K, from an investment property and use that to purchase another property? Thanks everyone

Chris

[Cory Smith]

J.,

From what I’ve seen, I’m still a novice, is that you have two options. 1) Refinance to pull out the equity. 2) Keep looking for banks that will do the HELOC on investment properties. My two business partners were having the same trouble you are, and I kept pushing them to keep looking. They eventually found a local bank that was willing to loan up to 70% with a HELOC on investment properties; which is allowing us to continue our acquisition phase. I’d suggest trying local banks, they seem to be the most willing to work with investors. Just because two or three banks said no, doesn’t mean it’s not possible: