2nd position lenders

[Rosie Small]

Bigger pockets community, I have a few rentals that I’m 50 or 60% ltv , and I would like o get a loan against them,  just to be 75% ltv , do you know any lender who will lend on 2nd position?

Im in the middle of a Brrrr, and looking for some liquidity. I don’t want to refinance because, I have 4 or 5% interest rates in many of my properties, 

Suggestions will be gratefully accepted 🙏

[Matthew Crivelli]

@Rosie Small

This is the situation many investors find themselves in right now. "I have a great rate but I can't access my equity."

In the current lending climate you will have a hard time finding a lender willing to give you a second position note like a HELOC on your rentals. If you do decide to refinance, my suggestion is to take the LOWER pre-payment penalty with a higher rate. Instead of, a lower interest rate with a larger PPP. That way if rates were to drop you can refinance without fees being tacked onto your payoff letter.

[Chris Seveney]

@Rosie Small

How much you looking for and for how long - I know some who will do it but the rate will be in the mid teens with several points on top

[Dennis Muno]

Quote from @Rosie Small:

Bigger pockets community, I have a few rentals that I’m 50 or 60% ltv , and I would like o get a loan against them,  just to be 75% ltv , do you know any lender who will lend on 2nd position?

Im in the middle of a Brrrr, and looking for some liquidity. I don’t want to refinance because, I have 4 or 5% interest rates in many of my properties, 

Suggestions will be gratefully accepted 🙏

While this may be a little more difficult, there are lenders that do this depending on if the property and financing sought meet their guidelines. Things like your FICO, equity in property, etc will factor into the availability. Keep in mind, any lender as second position takes a greater risk hence your loan pricing and interest rate for the second position will be a little higher.

[Erik Estrada]

Quote from @Rosie Small:

Bigger pockets community, I have a few rentals that I’m 50 or 60% ltv , and I would like o get a loan against them,  just to be 75% ltv , do you know any lender who will lend on 2nd position?

Im in the middle of a Brrrr, and looking for some liquidity. I don’t want to refinance because, I have 4 or 5% interest rates in many of my properties, 

Suggestions will be gratefully accepted 🙏

Yes you can do a second mortgage on investment properties. Max CLTV is 80%. Minimum loan amount is $100,000

[Rosie Small]

Quote from @Chris Seveney:

@Rosie Small

How much you looking for and for how long - I know some who will do it but the rate will be in the mid teens with several points on top

 Thank you for responding, Probably 6 months , $ 100,0000, I can use 4 to 5 properties . Please let me know what are the requirements, I have good credit 

[Rosie Small]

Quote from @Erik Estrada:

Quote from @Rosie Small:

Bigger pockets community, I have a few rentals that I’m 50 or 60% ltv , and I would like o get a loan against them,  just to be 75% ltv , do you know any lender who will lend on 2nd position?

Im in the middle of a Brrrr, and looking for some liquidity. I don’t want to refinance because, I have 4 or 5% interest rates in many of my properties, 

Suggestions will be gratefully accepted 🙏

Yes you can do a second mortgage on investment properties. Max CLTV is 80%. Minimum loan amount is $100,000

 Thank you 

[Rosie Small]

Quote from @Matthew Crivelli:

@Rosie Small

This is the situation many investors find themselves in right now. "I have a great rate but I can't access my equity."

In the current lending climate you will have a hard time finding a lender willing to give you a second position note like a HELOC on your rentals. If you do decide to refinance, my suggestion is to take the LOWER pre-payment penalty with a higher rate. Instead of, a lower interest rate with a larger PPP. That way if rates were to drop you can refinance without fees being tacked onto your payoff letter.

 exactly, the market was so good and interest so low , now what we do cash out refinance at 7% and say good bye to the cash flow or keep the cash flow and no liquidity to keep investing 

[Brittany Minocchi]

There are HELOCs and HELOANs available on investment properties, usually anywhere from 70-85% CLTV depending on the product and your FICO. Rate may be fixed or variable. Minimum draw varies by lender, the lowest I've seen is $25k. Some require a full initial draw. Prepayment penalties could be a factor as well, so make sure to check on that so you don't run into problems later.