Getting Lines Of Credit On All Properties Through One Bank
I was wondering are there any banks out there that would actually give me an equity line of credit on more than one property. Lets say I have $100,000 dollars woth of equity on three properties total. Instead of getting three different lines of credit, are any banks out there willing to do one line of credit for all three properties? Thanks. :-o
I have seen it before. It's called a blanket mortgage and covers multiple properties. You best bet for this type of loan would be a local bank that you have a good relationship with. I don't have enough properties yet, but looking forward to it.
I have seen a few that will do a blanket mortgage to pay off the existing loans and maybe even give you cash at closing. But I have not heard of any that will take a 2nd lein position as a blanket mortgage.
I agree that you should work with a small bank in your area. I took 6 of my properties and refinanced with a small bank. I was able to pull out cash but not what you are looking for. Sometimes banks will put together a package on a case by case basis. Don't give up!
Makes sense to try a bank first, as they have the lowest fees. They also seem to have the highest bars. I'm trying to do just that. but I just found out I'm at 51% Debt-to-Income, which is too high for them I just started in RE (and I started full time, just wanted out of the rat race) a seven months ago and I don't have the Schedule Es to support my rental income yet, so I look terrible on paper. I did talk to an indep. Mortgage Broker today and they will do a no-doc loan at a decent interest rate, but they tack on some substantial fees for the privilege.
You may be better off with a straight refi. Be careful using LOC for funding deals. They appear like credit cards on your credit report, and if you have a LOC, say, 90% tapped (like I do) it lowers your credit score just like carrying too high a balance on a credit card will do. This can reduce your ability to get bank $$ if.when you need it.
I heard from a good source that if you had a loan with Wachovia, they would let you get a line of credit to cover the equity in up to four investment properties.
Brenda
Renee:
I guess it depends on the bank. I work with two banks locally and specifically asked this question of one of them. They told me that, since they are not int he real estate business, they work spread a line of credit over more than one property. They don't want to have to take back multiple properties if the line of creidt goes into default. Maybe other banks are different, but this was my experience with a small, local bank.
John Walko