HELOCs for investing

[Katharine Chartrand]

I am evaluating offers from several banks for HELOCs on my investment properties. Basically, after my houses are rehabbed and while they are on the market, it is sometimes good to be able to borrow against them with a HELOC to have the funds to get started on another renovation.

The offers I am getting are 75% LTV, 7% interest, no closing costs.

Anyone else doing better? What bank?

Is there a smarter way to do this?

>KNC<

[Albert Bui]

Originally posted by @Katharine Chartrand:

I am evaluating offers from several banks for HELOCs on my investment properties. Basically, after my houses are rehabbed and while they are on the market, it is sometimes good to be able to borrow against them with a HELOC to have the funds to get started on another renovation.

The offers I am getting are 75% LTV, 7% interest, no closing costs.

Anyone else doing better? What bank?

Is there a smarter way to do this?

>KNC<

I got this from another investor but www.penfed.org or pentagon federal credit union will offer a 75% LTV 4.75% (1.5% + prime which is 3.25% currently) for borrowers with no more than 3 non owner or financed properties.

Not sure how many you have but the rate was great a lot of times they have promotions for 6 -12 months start rate that hovers around 1.5 -3%.

Other than than penfed.org has great car loans that goes beyond rate/price they use NADA.com instead of the lower kelly blue book or manheim valuation sites so you can get a higher cash out of your car(s) or if you're buying a car. I tend to get higher valuations on NADA and they cash out to 100% of retail value most CU's or banks use a lower valuation model and only go to 80% or so.