Los Angeles, CA · Member since 2018 · 9 posts · 4 votes
Hello,
I have owned a Duplex in Los Angeles County since 2019, and looked into accessing my equity for another purchase.
However, as I have never lived in the property, and the property is under an LLC, I was informed by a lender that I would not be able to pull a HELOC on the property.
Is this the case? - Are there lenders that you recommend that would be able to provide a HELOC in this type of scenario?
What are my options as far as being able to use the equity that has built up in the property?
I have owned a Duplex in Los Angeles County since 2019, and looked into accessing my equity for another purchase.
However, as I have never lived in the property, and the property is under an LLC, I was informed by a lender that I would not be able to pull a HELOC on the property.
Is this the case? - Are there lenders that you recommend that would be able to provide a HELOC in this type of scenario?
What are my options as far as being able to use the equity that has built up in the property?
Thank you very much for your help!
Hey Shawn, I do offer HELOCs on investment properties but not on anything bigger than a 1 unit SFR. Similar to what Alex Hunt offers, I do have 2nd position HELOANs on investment properties with more flexibility. Hopefully, between Alex and I you've got your question answered.
Having the property held by the LLC may be the issue. You could use a DSCR mortgage. There may be an option for a fixed rate second mortgage. I'd see about networking in your local area with other investors, or visit the forum section on LA, join a local real estate investment group and ask experienced investors there.
Shawn I've been in lending for almost 8 years and I have yet to see a lender that does lines of credit on investment properties...it's just such a risky investment. That said, I'm definitely voting up your post because I'd love to see if anyone else has seen one and I'd love to meet the lender that does it and see what the criteria are if anyone actually does it.
This is a common problem for investors, yes HELOC's are reserved for primary residence, 2nd/ vacation homes. Options you can cashout refinance the property, if your current rate is low and you wish to keep it. Then there is a 2nd lien/ mortgage program we have that would really be the other option. @Christopher Grobaker It's a 30 year fixed 2nd position, not a line of credit. That in all my years, I have never found.
I have owned a Duplex in Los Angeles County since 2019, and looked into accessing my equity for another purchase.
However, as I have never lived in the property, and the property is under an LLC, I was informed by a lender that I would not be able to pull a HELOC on the property.
Is this the case? - Are there lenders that you recommend that would be able to provide a HELOC in this type of scenario?
What are my options as far as being able to use the equity that has built up in the property?
Thank you very much for your help!
Hey Shawn, I do offer HELOCs on investment properties but not on anything bigger than a 1 unit SFR. Similar to what Alex Hunt offers, I do have 2nd position HELOANs on investment properties with more flexibility. Hopefully, between Alex and I you've got your question answered.
Shawn, all valid and good options mentioned above. One additional structure would be to cross-collateralize your future purchase with your existing property. Essentially you would have a lien on your current property for the "equity" needed on the purchase deal. This would only be a short-term (12-24 month) loan but is a great option for those value-add scenarios. Let us know which route you end up going with!