Equity in Investment Properties

[Fernando Martínez]

Greetings Everyone,

Reaching out to see what strategies I could use moving forward. I have 2 investment single family homes that are completely paid off. I want to use the equity in them to purchase other investment properties. Are there certain lenders that will only let me use the equity since they are investment properties. Both are occupied. Any suggestions or recommendations would be helpful. Thank you very much.

[Chris Davidson]

@Fernando Martínez this is one of my favorite strategies and how I really scaled low leveraged. Short answer yes. Long answer you will have to find the right bank/ lender. Sometimes smaller regional ones are easier to deal with because you are a small customer and big banks just want fees. What I did was ask the bank what kind of terms I could get on a LOC collateralized by property the first bank I used only gave me 40 cents on the dollar or a 40ltv where the one I am using now is 70 cents on the dollar or 70 ltv. They pulled appraisals and I got a LOC for 70% of the value. It is just like a HELOC but has multiple properties under it. A lot of times banks keep these in house and thus are called portfolio loans as it stays on the banks portfolio.