Banks are crazy

[Zach Adams]

So today I decided to take a HELOC out on a rental property that is out of state. I called BofA and the lady said no HELOCs on investment properties. No way I thought and asked to speak to someone else. After much effort I finally found somebody that would work for me at the same bank!

Advice: Right now there are some attractive no-cost HELOCs out there, even locking prime, no fee, zero closing, etc.  Take a look, now seems to be a good time for a lot of places.  Atlanta had appreciated enough that I'd gained some good equity.  Going to use this money as a downpayment for my next owner-occupied MFH.

Bottom line, the banks don't know what they're talking about often.  At least it takes time to find someone that does.

Now to find a deal!

[Joe Villeneuve]

Different departments, different products.  Banks are like Vegas odds makers.  They need to balance their portfolios for weight of investment/investors.  They don't want to be "top heavy" in any one vehicle.  Just like Vegas will move the odds back and forth to attract bettors to both sides of the "game".  Vegas can't lose this way.

What you experienced was the bank telling you they don't "want" to sell you an LOC...not that they didn't have it. The first person you talked to was following instructions from above, and probably didn't know the LOC's for sale even existed. When you moved up the ladder, the new contacts gave in, but at a higher price than maybe somewhere else.

Banks sell "financial products" (virtual money).  Just like any other business, the price goes up and down as does "at the time" availability.  Just like any other product, from any other business, you just have to shop around.

Banks aren't "crazy".  They control the money.  Therefor, banks are "eccentric".