Other and best ways to use built up equity In properties that are free and clear

[Sean Maloney]

I have several free and clear properties. Besides HELOC or lines of credit are there any ways people are using built up equity to secure their deals? I have heard of a way to tie a property with equity to others to satisfy the need for money down.

Has anyone done this? What lender did you use? How would this be explained to other lenders and what kind of terms? 

I would like to use all my built up equity with out refinancing or taking on the additional payments that come with the obvious ways to typically pull money out.

- Sean Maloney

Erie PA.

[Corby Goade]

Quote from @Sean Maloney:

Quote from @Jason Allen:

Quote from @Sean Maloney:

I have several free and clear properties. Besides HELOC or lines of credit are there any ways people are using built up equity to secure their deals? I have heard of a way to tie a property with equity to others to satisfy the need for money down.

Has anyone done this? What lender did you use? How would this be explained to other lenders and what kind of terms? 

I would like to use all my built up equity with out refinancing or taking on the additional payments that come with the obvious ways to typically pull money out.

- Sean Maloney

Erie 

You can get HELOCs on investment properties, but there are not many players in that market, and consequently, it's much more time consuming compared to a primary, and the rates will not be good. I would either sell the underperformers (before the market gets weaker) or look into DSCR loans.

Thanks for your feedback 

 The properties that I own free and clear are properties that I plan on keeping they have great cash flow. 

I just want to aggressively take on a lot of deals for 2024 and I have a ton of equity sitting in these properties and would like to be able to utilize it, instead of the basic helocs or credit lines I wanted to be able to come up with a solution to either tie these properties to the new ones or to somehow find a lender willing to use these as collateral in some way without needing to refinance/HELOC

I'm really confused about what you are looking for- it sounds like you want some sort of loan that collateralizes your equity, but you are saying that you don't want a loan. What else is there? Is there a specific reason you don't want a HELOC? For your situation, that's going to be the cheapest, most flexible funding available.