equity loan trap! - Posted by Senator

Posted by ken in sc on May 02, 2000 at 08:04:05:

I have a lender who has given me a line of credit backed by 2nd mortgages on 3 properties, total equity 80K, line of credit, 20K. Try the small local banks, Bank of America sized banks will laugh at you.
Also, think what else do you have? 5% down can’t be much. Is your car paid off? Do you have a stock portfolio that you can hypothecate? Don’t give up too easily. I have my rental trust account at the small bank that I use. With all the damage deposits in there, it typically has 10K in it. If you have an acct at a bank with 10K already, it is easier to borrow 10K from them. You can pledge all kinds of stuff as collateral. Ask the banker for his/her ideas. Sometimes they can be creative as well.
Good luck!

equity loan trap! - Posted by Senator

Posted by Senator on May 02, 2000 at 07:34:59:

I was all set to make a deal…the owner would finance with 5% down. So, I would borrow the down payment against my other investment properties. The problem is, I cant find a banker who will lend money secured by investment property, only your primary residence.

Have you guys heard of this? Anyone know a way around it?