Line of Credit for 5 Unit Property

[Andrew S.]

Hi All -

I have substantial equity tied up in two investment properties (a 5 family commercial property and a 3 family residential property) which I would like to access through Line of Credit products. However, I've called a range of lenders (banks), small and large, and so far none of them are willing to issue a Line of Credit for non owner occupied investment properties. Both of my properties have existing mortgages in first position and the existing first mortgage lenders are recommending a cash out refinance. I'm reluctant to do a refi since I have great rates locked in and I'm not 100% sure when I will need access to the credit lines, plus I'd rather avoid increasing my payments until I need the money. I'm hoping that some of the experts here with more experience and knowledge in this area could point me in the right direction. I don't think the intended use of the Line of Credit should matter, however, I am hoping to use the credit line to finance new business opportunities . . .

Thanks in advance,

Andrew

[Scott Hollister]

@Andrew S. just spoke with my commercial lender in CT, he said they do offer lines of credits on commercial properties in 2nd position. However, they have to be behind their 1st loan. He doesn't know of any other banks that do this currently around here. 

What is your interest rate and terms? 

What town?