Posted by Ken Jacoby - Alaska on January 05, 2002 at 12:22:21:
In Reply to: Home Equity Loan on Investment Property posted by NJ on January 03, 2002 at 13:07:52:
I agree - this should be easy to get and equity loan at a fairly reasonable rate for up to 75% of total LTV
which in your case should be approx $281K - less your existing first of $158K. I did a similar thing on a portfolio of investment properties where the lender was an independent local bank and had a first lien on all of the properties anyway so I paid no points and very minimal closing costs. I got an equity line at 8.5% for my reserve interest in these properties, for 12 months. What made it even more interesting, I had sold all of these properties with owner financing and was carrying the paper - I did not really even own them - the bank knew this and did this against my equity interest position - they were comfortable with the conservative 75% LTV and first lien positions - of course my long term performance record with that bank helped too.Regards,
Ken Jacoby - Alaska