What should you know before you get a HELOC?
First, know where to go for HELOCs. This is typically local credit unions and large national banks.
But before you call these institutions, make sure you have these 5 things ready:
- How much your property is worth.
- How much you owe on it.
- Align your LTVs. So if it’s a rental property, make sure your current mortgage and your current value is 70-75% or less, or HELOCs are probably not going to be available to you.
- What your credit score is. Know what it is and know what it needs to be. Most places will require a minimum 680, but 700 is better. The higher your credit score, the higher your loan-to-value.
- What type of property it is. Especially with a rental, know its condition and whether it’s a single-family, duplex, etc.
A final tip on HELOCs: each bank or company will give you a HELOC on between one and three of your properties. So if you want a HELOC on five, ten, or twenty properties, you’ll have to set up accounts at different banks.
As an alternative, you could also look into lines of credit, which span multiple properties.
Help to Get a HELOC (and More)
We want to make it easier for you to get the best, cheapest leverage possible for your investments.
If you have any questions or have a loan you’d like us to price out, reach out to us at Info@TheCashFlowCompany.com. If you just want more information on real estate investing, you should check out the videos on our YouTube channel.
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