Financing in Phoenix>Question Details

Taza Guru, Home Buyer in Sunnyvale, CA

Is there a financial institution that can let open line of credit or equity loan on investment properties?

Asked by Taza Guru, Sunnyvale, CA Wed Jan 4, 2012

I am wondering if making investment properties brings investment to a dead-end. In other words, Is it possible that a financial institution can look at investment properties,the rents it yeilds, ( and hopefully) appreciation and let us open a line of credit (or assuming the equity has built over time, equity loan)? I would love to hear about them. Also, I hear that there are private investors who can lend. I would love to talk to them as well. One caveat is, we cannot make a large closing costs or whatever costs. Thanks in advance.

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7
sorry the phone number for Rick or Josue is 480-755-0974

Matt Puzz
Licensed Loan Originator
Amerifirst Financial, Inc.
1910 S. Stapley Drive #209
Mesa, AZ 85204
Direct: 602-410-9333
Office: 480-682-6617
Fax: 480-344-3687
NMLS# 213777 AZ LO-0915068
Apply Online: http://www.mattpuzz.com
0 votes Thank Flag Link Thu Jan 5, 2012
Hi Taza,

Private lenders are going to run high interest rates. Can be good for fix and flip or short term financing. There is private money available as low as 9%. Terms are usually pretty short 6mos to may be 5 yrs.

Traditional lending is available, but you will need good credit and income along with down payment money.

If you have a lack of cash, you need to look at other sources. Equity in your own home, other assets, unsecured lines (credit cards), friends, family, or business partners. If you have a 401K, your 401K can purchase property with out penalty if done right.
0 votes Thank Flag Link Thu Jan 5, 2012
If the property is in AZ, contact Rick or Josue at MidFirst Bank. MidFirst will do first position Home Equity Lines of Credit up to 65% Loan to Value on Investment Properties. If you would like to talk with me before calling them I can give you some details. Good Luck.

Matt Puzz
Licensed Loan Originator
Amerifirst Financial, Inc.
1910 S. Stapley Drive #209
Mesa, AZ 85204
Direct: 602-410-9333
Office: 480-682-6617
Fax: 480-344-3687
NMLS# 213777 AZ LO-0915068
Apply Online: http://www.mattpuzz.com
Web Reference: http://www.mattpuzz.com
0 votes Thank Flag Link Thu Jan 5, 2012
Taza,

We work with a lot of investors. Local and foreign nationals. Your situation will depend upon what you can do. With one of our lenders, even Canadians can get a 35% down mortgage and pull out 50% from a free and clear property. Our local investors usually do 20% down, but I have seen less.

Pulling money out of a property usually works if you have more than 20% in equity. Different lenders do have different requirements, but most require pretty close to the same guidelines.

Best Regards,

Brenda

Ron & Brenda Cunningham
West USA Realty
602-980-3133
***** Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley" ****
0 votes Thank Flag Link Thu Jan 5, 2012
Try Mark Taylor at American First Financial. He has a great track record as a lender. 602-361-0707. If you need any further help, please give me a call.
Thanks
Evelyn Thorn
HomeSmart Realty
480-248-4577
0 votes Thank Flag Link Thu Jan 5, 2012
Hi Taza -
Fortunately, Investor Mike is incorrect. While lending guidelines have tightened, lenders are still definitely lending to investors. Equity is the key. More about your situation needs to be known to give you a meaningful answer, but if you don't have more than 20% equity you will be out of luck with any financing on an investment property. Feel free to get in touch with me to discuss your situation in more detail.

Brian Cardenas
Sr. Mortgage Loan Originator
1st Rate Home Mortgage, Inc.
Mobile: 480.233.7897
0 votes Thank Flag Link Thu Jan 5, 2012
Here’s some valuable information for the newbie. Financial institutions/banks don’t lend to investors anymore. End of story. Cash only.

Private investor loans definition: Loan sharks, investors groups whom you can meet on the golf courses in Scottsdale will hit you with 20% interest. Lawyers, doctors and 85 year old wealthy rich guys. Good luck hitting it off with them. Sorry guy. The truth hurts.


Good luck out there,
Investor Mike
Gilbert, AZ
0 votes Thank Flag Link Thu Jan 5, 2012
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