Financing in Sacramento>Question Details

Sándor Lau, Both Buyer and Seller in Eugene, OR

I have an investment property in Sacramento, CA with a good amount of equity. Can I get a second mortgage or equity line of credit? Where?

Asked by Sándor Lau, Eugene, OR Wed Jun 30, 2010

To be clear, this is an investment property I do not live in. I purchased in September 2009, so I have owned it less than a year and have been told I must wait a year before refinancing the entire property. I have a beautiful first loan on it, 30 year fixed at 5% which I'm reticent to give up. I owe $145K and think the property is worth about $275K.

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Another possibility is to find an investment partner(s) buy half of your equity in exchange for half the net profit and half the future appreciation. That method alows you to continue the benefit of owning a Sacramento investment, without increasing your debt load.

If your investment partner is local, you have the added benefit of someone (in addition to your tenant) who can keep an eye on the property for the partnership.
0 votes Thank Flag Link Thu Jul 22, 2010
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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I believe the wit time is more like 6 months to refi. The problem will be in getting an appraiser to agree with your determination of value. I'd suggest contacting a loan broker and a direct lender to get different opinions. Current interest rates are still below 5%, so refinancing would not be so painful.
0 votes Thank Flag Link Thu Jul 1, 2010
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