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Richard, Tax Attorney
Category: Finance
Satisfied Customers: 55134
Experience:  29 years of experience as a tax, real estate, and business attorney.
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How do I get a loan from the equity in my rental property?

Customer Question

How do I get a loan from the equity in my rental property?
Submitted: 1 year ago.
Category: Finance
Expert:  Richard replied 1 year ago.

Good morning. My name is ***** ***** I look forward to helping you.

Can you provide me a bit more information? What is the value of the property? Any existing mortgages? If so, what is the outstanding balance. How much are you trying to borrow? What is your credit rating? Thanks.

Customer: replied 1 year ago.
House is worth around 200k. I owe 103k. Credit rating 750. Probably just need 20k but considering using equity as down pmt on more properties.
Expert:  Richard replied 1 year ago.

Thanks for responding. This should be very easy for you to get down. I would start with your existing lender or at a bank where you have an existing relationship. Given the loan amount you're are seeking as compared to the equity, along with your credit rating, either should be willing to provide you the loan.

Customer: replied 1 year ago.
I already checked with my bank which is Wells Fargo. They will not do it b/c it's considered an investment prop. And I have not lived there in the past two yes. No bank I've asked will do it.
Expert:  Richard replied 1 year ago.

Thanks for following up. Have you simply tried to get an unsecured personal loan based on your credit rating?

Customer: replied 1 year ago.
No. But that sounds like a good option. Except interest rate might be high. I have 11% line of credit with Well Fargo for 10k and 8k available. I was hoping for a lower rate than that.
Expert:  Richard replied 1 year ago.

I would also suggest contacting a commercial mortgage broker, especially one in the city where the property is located. They are excellent sources. :)