All Forum Posts by: Stefan Tsvetkov

@Jacqueline Wright Thank you.

This is a 2010 article, pertaining to HELOC lenders not performing title searches at all. I am trying to reconcile to 'today' HELOC lenders, which do conduct title searches, though either assume the title costs, or are able to conduct same more cost effectively than PML.

@Jeff S. Pulling out equity is frequently a short term loan, sub 12 months. A full refinance-type closing is not viable in this case, the APR becomes astronomical. To clarify, the desired loan here is not PML = hard money. For true private money from individuals, the comparison could hold.

Thanks for the feedback on NY/NJ foreclosure laws, this is good knowledge.

Sure. Will look to interview them for the exact details. It seems pretty common for virtually every HELOC lender I've seen (have worked with at least three) to have extremely low closing costs, not in line with a full refinance.

They primarily serve 1-4 unit, and I largely focus on 20+ units at the moment. So that is another limitation that HELOC lenders have.

It is 2nd Lien HELOC, high LTV as well: 100% primary residence, 80% investment. Understood as for PML vs. bank business model differences. Still from an investor loan demand standpoint, the competitive advantage of small banks in HE Loans, vs. private money seems striking.

@Beth Johnson Would you know the exact set of title elements completed by conventional HELOC lenders? I used to have a primary residence HELOC for $200k, with full closing costs at ~$500-1000. Got similarly low closing costs for further investment property HELOCs I pulled. A refinance of the same dollar amount would run at ~5 times the above title work costs for the same properties.

I am puzzled as to why private lenders would not be competitive closing costs wise vs. HELOC lenders. How do traditional HELOC lenders stay protected?

P.S. I live in NYC, own properties in multiple states.

Thanks! To confirm, does your firm do 2nd lien lending, assuming title costs are not too high indeed? If you guys do 2nd lien lending, I think we should connect. And what would be the maximum LTV?

We can do the same title work that HELOC lenders complete, totally open to that. Spending ~$5-8k per property on a full refinance type of title work, not worth economically for 2nd lien, smaller equity pull outs ($50-150k per property).

I would complete a full refinance of the 1st lien instead, in case of the above.