Posted by LJ on December 27, 2001 at 17:16:04:
Probably if the 40K equity you pull still leaves each property at 80%LTV. Of course they will want to charge you for new appraisals, etc, etc just to use YOUR money.
When I went into MY bank where I had done many loans, mortgages, had A++ credit, etc, I asked for a business line-of-credit. I was then offered an “equity line” tied to 2 properties that were bank financed with them. They wanted to keep them at 75% LTV, so they offered me a miniscule line of credit that was secured. Cost to set it up: $750 or so. When I stopped laughing long enough to tell the banker that I had a dozen better offers on my table from unsecured credit cards, he grinned. When I told him that none of them would make me pay for appraisals and recording, etc, he scratched his head.
When I told him (very politely) that I was going down the street to the next bank…not to return until his bank was competitive, he frowned.
The next bank seemed to understand what a business line of credit was all about and they were helpful. No fees as with the equity lines, and these are NOT based on equity. One local bank offers signature loans(lines) unless you go over 35K. Above 35K they ask for a personal financial statement and tax returns as a sort of collateral…though the line is still not equity based. I’d knock on enough doors until you find someone who does not say “equity” during your conversation. Good luck, LJ