All Forum Posts by: Joseph Coleman

@Dan C. I would check out the book Lend to Live.

You may also want to reach out to the authors Alex and Beth, they are fairly active on BiggerPockets.

@Eric Vermilion from USABizLoans may be able to help provide some direction on this. 

@Ralph A Walkling That is a gorgeous area! I can understand why you want to keep one : )

CoreVest has offered investment property HELOCs in the past, but I have not used them personally.

A HELOC on a non-owner occupied is hard to come by because lenders consider them to be riskier than own-occupied properties.

Below are some BP threads that could be helpful for starting your search.

MasterList of Investor HELOCs

HELOC on investment property. 

Let us know how the search goes! If I come across any lenders in Florida for non owner occupied properties I will let you know.

@Braydin Mehnert I agree with this. i-bonds are generating over 9% risk free return right now. Granted there is a limit on the amount you can invest (only $10K). But in principal I agree that you should allocate your money to the area that will give you the greatest return, regardless of whether that is paying off debt or investing in an asset that generates a return (adjusting for risk).

@Wes Mccullar How often does the interest rate on your HELOC reset?

Hi @Thomas C., I have not used New Silver's personal loan but their founder @Kirill Bensonoff is on BiggerPockets. @Kirill Bensonoff, do have any examples of how this new product can help investors like Thomas? 

Hey @Nick Steinhaus! Welcome to the forums. When you say "use equity" in your home, could you share little bit more about what you mean by that and your goals for using this equity? 

I can think of 5 ways to "use equity" to help purchase a commercial property. 

-Extract your equity through a cash out refinance of your existing property
-Get a home equity line of credit 
-Sell the equity in your home to a company like Hometap
-Use the equity in your home as collateral on a loan from a private investor 
-Get a low interest credit card that is secured by your home equity

All of these options still require a healthy down payment and a good deal with returns that are above and beyond your cost of capital so that your debt is levering up your profit vs levering up your losses.

@Jose Villa
Any updates on your search?

There are many lenders in The BiggerPockets Hard Money Lending Directory that offer this type of loan. 

But keep in mind that the rates are going to be higher because the lender is taking on the additional risk that if for some reason you do not finish the project on time, they may need to sell the property mid-construction. 

For example, check out LendingOne, RCN and Aloha Capital. They all have different terms and requirements but generally it looks like rates start around 10% (as of July 13th 2022). There will be additional points charged on top of that and you receive the money according to the draw schedule after you complete your scheduled milestones. 

Increased risk demands a higher return. 

@Emily Beck,

I would agree with Andrew's points. 

If you have 20-25% down and identify a great cash flowing property, then a DSCR lender could be a great fit.

Most of the lenders in BiggerPockets Hard Money Lending Directory offer this and other financing options that do not require W2 income. 

You could also consider a short term bridge loan for a value add project and then later refinance into a long term DSCR.

Keep in mind that your interest rate will be higher. 

@Alex Breshears 
You may want to check out AXYLUM 
"AXY Wrap™, acts as a safeguard for retail and wholesale private lenders. In the event of default, Axylyum Charter will purchase the distressed asset at 100% of the origination price."

I have not used them and I am not affiliated with them in anyway but it looks like an interesting option for mitigating risk in certain scenarios. 

@Chinny Anajemba I agree that talking with several lenders is a good idea and it's smart to get a quote showing their rates and terms on the same day because they change so frequently. If you do not know where to start you can search in BiggerPockets or ask your agent. I am biased towards The One Brokerage team (David Greene's company). They are focused on real estate investors, which makes a difference.