Posted by Tim (CT) on July 24, 2003 at 08:13:53:
REPOST from finance group. Just looking to get feedback from others.
O.K. I have a rental property that I want to do a HELOC on. I’m working with a bank that I currently use (I have another HELOC on another property). Should be a good fit, right? Well it’s been 7 weeks. This guy seems to be jerking us around. His latest issue: The property we’re trying to get an LOC on was under my LLC. He suggested we put it into our own names due to interest rates, etc. O.K. No problem. We did that. Now he’s telling us that the “loss” we took on the property the last two years is working against us because it doesn’t look like a profitable business. Well, we currently get $1200 positive cash flow/mo off of this property. The only thing we’ve done is itemized all of our expenses. Coupled with the depreciation, this shows a loss on our tax filings. This past year we received about 5k back and the year before we received about 7k back.
I don’t understand the problem? From a monthly basis, we’ve, obviously, got plenty of cash flow. From an equity standpoint, we’ve got about 60k (all we’re looking for is about 25k to 30k). My credit is O.K. (680). He’s been dragging this out for 7 WEEKS!! Either this thing is going to happen or it’s not. I’m calling him today and giving him until tomorrow to get this done. There’s too many other lending institutions that would’ve done this loc in a heartbeat.
Any thoughts as to what I should say to this guy other than “sh*t or get off the pot”!!