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To get a fixed 5 year equity line on an investment property, is there any benefits to do that?


To get a fixed 5 year equity line on an investment property, is there any benefits to do that?

I would need a lot more information. It is good that it is fixed. Just make sure that the house is worth quite a bit more than what you owe on it. The benefit depends on what you will be doing with the money.

There are alot of downsides, like a housing market slum and then you are forced to forclose.

It doesn't really make sense unless there is a good amount of equity in the home and you really need the money. In today's market it might take 5 years just to get the money back from the equity line fees, and unless you pay it off, you'll have to take out another equity line and you will be charged more fees.

However, if you need the money, have a small loan to value ratio and you can find an equity line with no closing costs, it might not be a bad idea.

With the bargains that are on the market currently, I would only (notice I said "only") use the equity money to make more money. No other reason! If you need to pull cash for a down payment to buy another investment property that's already below market then go for it. Otherwise don't use your property as a ATM.

Good finance question! I know of an organization that gives up to $1500 to people to help them with their rent or mortgage. It's available in most US cities, I highly suggest you check it out.


http://www.assist-house-mortgage-rent.or...

Best of Luck.

It all depends on what your plan is. If it involves using that money as a down payment on another investment property that is cash flowing it would be insane not to take make use of a line of credit.

The bottom line is that you need to have a clear and well thought out plan before you make your move. Time and time again I鈥檓 beseeched by real estate investors that got in way over their head because they did not have a plan and were not partnered up with a financing expert that understood their needs and long term goals.

If you鈥檙e looking for comprehensive and balanced solutions to your financing needs feel free to contact me at RLFunding@AOL.com. We are licensed in all 50 states and specialize in TAX FREE mortgages in the state of New York.

Best Regards,

J. Polanco
Financing Advisor
Robbins and Lloyd Mortgage Corp.
347 5th Avenue, Suite 1506
New York, New York 10016
www.RobbinsLloyd.com

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