Equity Line of Credit on Investment Property

[Ben F.]

I getting feedback that lenders are not doing equity lines of credit on investment properties?  Is this consistent with what you all are aware of? I'm getting mixed messages...

[Account Closed]

Hey Guac,

Your best bet is to find a regional bank with a strong background in real estate. A regional bank is one that has around 10-billion in assets. Chances are any investment property line of credit will be a 70/30 LTV with a rate close to prime plus 1%.

Furthermore, let’s say that you have a 100k line of credit. If one month in you use the entire amount to fund a down payment for a new property you wanted, your bank will likely ask you to term the loan at, aka have fixed monthly payments or pay it back.

This ties into a larger picture of what is your real estate strategy? I’ve just been going through what you are asking.

I hope that helps

Jon