All Forum Posts by: Timothy Trewin

Greetings all,

I have been trying to get creative with financing on an investment property and have run into snags. I was denied a HELOC or even just an equity loan on an investment property that I own and wanted to know if this is the norm or if it was the bank I used. Basically I have a home that I currently rent out that I wanted to draw out some of the equity on in order to put money down on another purchase. I currently owe $203,000 on it and the home is valued at $266,000 so i was basically trying to pull $20,000 out but was denied by the bank. They stated that I could have pulled out $10,000 had it been my primary residence. This is all with excellent credit.

Will this be a standard that I will face as I keep trying as my credit takes a hit every time a bank considers me for one of these, or is this an outlier? Also are there any lenders that others have used in the past that are more friendly towards investors? I am not concerned about getting the loan for financing the property, but the lender I am using does not do HELOCs or equity loans. I do not want to drain my emergency fund in order to have the funds to pay for the down payment and would rather leverage the equity I already have. I appreciate any help that can be provided by anyone here.

Tim

Eric,

I just started hearing about Birmingham as well and it has truly intrigued me. It is a market that I am going to have to look into as a possibility. Thanks for bringing that up for others to know about.

What banks are investors friendly? Thanks!

I have heard a little about turnkey properties and they seem like they could be good if researched properly. They seem to be a newer concept and I am contemplating buying one through a turnkey. From what I know of them they do roughly what your friend seems to be doing, buy low, rehab, and then resell and in many cases manage for the investor. I personally would be leery though of anyone who "guarantees" a certain rate of return. Now they might be able to make that happen, just it makes me nervous.  

@Sherry Morris 

Welcome to the site and best of luck from another fellow Tennessee investor. This site is amazing and well worth your time learning on and networking with people. 

@Curt Davis 

Thank you for that. I am going to look into that then. 

Greetings all,

I just had a question in regards to loan types and I wanted to see what others tended to use when they started out. I can't do a VA loan as I used it for my house that is currently rented out in Colorado and on the house I currently live in here in Tennessee. Considering I have a family and just moved in to my house I would assume that FHA/Homepath would be out of the question for me. I am trying to get into my first multi family property. I was reading a book on investing in real estate (The Unofficial Guide to Real Estate Investing)and I just finished the chapter on funding sources and the book mentioned three types of conventional loans (my most likely source of funding), fixed rate loans, no-neg ARM, and neg-am ARM. I assume others have used these types of loans before. What I wanted to know is what have others used and why? I know what the book says, but I wanted to see what others have done to success in the real world. Hopefully this message makes sense and I do appreciate the advice.

Timothy  

@Larry Turowski , you might feel like the deals are not coming consistently enough but that might be a good thing. Everything happens for a reason int he time it is supposed to happen so these deals you might feel like you are missing out on might not be as good as they sound. You are farther along than probably 85% of the country so you are still doing well for yourself.

@Larry Turowski 

Excellent points that you made there. The more information you can gather from others the better, especially the ones who are succeeding. This make it possible for others to do it and inspires them to take that leap of faith and do it for themselves.  

@Jonathan Twombly 

Congrats. That is a significant accomplishment.