HELOC On My Portfolio?

[Sheena Blankenagel]

Hello All,

Have you successfully lined up a revolving credit line on your entire portfolio?
I have a lot of equity spread between my multiple properties, and I'd like to find a bank that will extend a line of credit collateralized by the full portfolio. I have some meetings set up with lenders already, but I'd LOVE any suggestions on bank/institutions that you have successfully done this with. Thanks!

[Andrew Postell]

@Mark Sheppard I would be very shocked if any out of state lender could write a HELOC on an investment property. Every time we go through this the lender initially will say "oh, we can do that" and then once it's in underwriting they say "Sorry, we can't do it in Texas".

Usually when I field this answer out in the general forums it about finding this in ANY state so I'll answer it for Texas and for everyone else just in case it get's researched.

1. Texas - Cash out loans of any type are pretty challenging here in Texas. Because of this many lenders won't do these loans at all. Finding a lender that does investment property "Lines of Credit" is hard in any state...but here it's even harder. I know 3 that write them locally in DFW...and only one of those will do it state wide. But am certainly willing to share any information if you just PM me. No problem.

2. For everyone else....a small, local lender will be your HIGHEST probability of success when trying to find "Line of Credit" lenders on investment properties. The unfortunate thing here is that investment properties foreclose at a higher rate than primary homes so many banks just don't want the exposure to this. But it is 100% possible to find but you have to put in the time or at least know someone that ALREADY has the connection. Here's my 2 suggestions:

1. Visit your local REI groups. There are many groups that meet across the country. Some post here on the Bigger Pockets Marketplace. Many post on meetup.com. Networking is always a great practice and you never know who you might meet there and what good information they have to share. Would certainly recommend visiting if one is close to you.
2. Calling - and then there's this option. Which is what I had to do. I had to call about 200 lenders (no exaggeration) to learn of 4 lenders who did this and I have some tips. First, when calling banks target the smallest most community based banks you can first. If you have never heard of them, and they have one location - that's a good candidate. No big, national, publicly traded banks will do this loan type. Second, try to ask for "LINES OF CREDIT" instead of "HELOC". I know it sounds like I'm splitting hairs but some banks write HELOCs in their residential department....which won't write Investment Properties. And that residential department will often not speak to the commercial department. So they'll just say "sorry, we don't do it"....not even knowing that they really do! So if you ask for a "line of credit on an investment property" that should get you to the COMMERCIAL division. That's the section of the bank we want. Now, most of these smaller banks may only have 12 employees or so. So don't get frustrated if they don't return your call or aren't in the office. Just call back and be friendly. Maybe play dumb a little "I don't know if I'm in the right place..." "I'm sorry to disturb you, you may not be the right person for this....", etc. Maybe someone can get you to the right person. Again, be prepared to call A LOT