Line of Credit on Investment Property

[Adrian M]

Fellow Investors,

I'd like to obtain a line of credit against the equity in one of my investment properties. If you've pursued a line of credit against an investment property, could you please share your experience(s)? Were you successful? If not, what prevented you from getting the line of credit? If you were successful, which lender did you end up using? Thank you!

-Adrian

[Rob K.]

Originally posted by @Steve Babiak:

I have a line of credit on an investment that was originally made by Wachovia - now Wells Fargo. No fees to write a check on that or on the HELOC on my residence.

@Rob K. can chime in and tell you about his line and lender

I have several HELOC's on investment properties. I like them. You can use the money when you need it and when you don't, it can wait on stand by for free. You only pay interest when you use it. I just closed on a house Monday and used a line of credit to purchase. Another good thing is that the interest is based on prime, so rates are currently low. They could go up in the future, but I have a line from BOA from 2007 that is currently 3.75%. You won't find that kind of deal now and BOA doesn't do these anymore anyway.

As far as places to get them, I have two with Huntington Bank. They were the easiest to deal with and I'm very happy with them. Two is the max that they will do. I also have two with Wells Fargo. They were not as easy to deal with, but still got done. I recently talked to Fifth Third. They offer them as well, but wouldn't touch me do to the amount of mortgages that I have.

The benefits that I like are that the closing a costs are very low and the money can be borrowed and paid back over and over. I really like using a line from one house to purchase another. It makes for a fast cash transaction with no fees. You can always sell or refinance the new house, pay the line back, and then use it again for the next house.