I own a house with 130,000 equity in it. Best way to buy an investment property without selling this one???

I would like to buy an investment property using the equity in my present home,without having to sell my present house as it's in an up and coming area. Any advice would be much appreciated.

Re-mortgage your own home to raise the deposit on a buy to let place. Mind you, beware of those tenants out there. You cant tarr them all with the same brush, but loads are con artists. Struggling with one at the moment!

You might be able to refinance your home and get some of the equity out. In the current mortgage market this has become somewhat difficult, so your timing is bad, but you can ask.

Good luck.

The best way to do this is to get a Home Equity LIne of credit on yoru current house. You will likely not need the whole amount so a HELOC is the best option for you for a couple of reasons:

1. HELOC is far cheaper as far as closing costs go compared to a refinance

2. You only pay interest on the amount you borrow against the HELOC instead of the whole amount that you likely won't be using.

Contacting your local bank or a big chain such as washington mutual or wachovia is the best way to get a HELOC.

I work with investors all the time and this is one way I recommend they leverage the equity in teh primary to buy other properties.

You can take out a home equity loan on the first property to help finance the second.

Yes you can leverage that equity as a down payment or or straight up purchase of a another property. There are several way to do this. Drop me a line some time. Mortgage professional.

Either Freddie Mae or Freddie Mac have an asset backed loan. Most mort. brokers do not know about it so you will have to ask directly . . . It's for high net worth individuals. Basically, the long and the short of the program is when my husband and I want to buy an investment property - we put up a cash (or the equivalent of cash) bond to secure the loan. You agree to not touch the bond until the loan is paid off. In the event that you default the bank does not repossess the investment property but takes the cash bond. I'm not sure if you qualify because I'm assuming there is a mort. on the property mentioned. If you don't have a mort. and are not planning on moving - it's a great plan.

Taking the equity out is good, but you may also see if you can qualify first before going through the equity process.

Is there or will there be a positive cash flow. Have you ever been a landlord. Go to ebay and buy Carleton Sheets property management course. It has lots of great forms and advice. Also my web site www.freemoneyforahome.com can get you a free down payment you don't have to repay.

if your property is in California I can help you get cash out. The amount would depend on your credit score. However, equity positions in California are on a decline so contact me as soon as possible.
ttiraturyan@yahoo.com
Tim

I think your best bet is to try and refinance your present home and take some of the equity out of it to purchase your investment home.

I would not recommend taking ALL the equity out of your present home, but enough to cover a down payment and closing cost and a couple of months of holding cost on your investment property.

Refinance your home to obtain a HELOC. Use the money as a down payment for the investment property. Make sure that you have your mortgage lined up for the investment property when you start the purchase process for the investment property.

Hope this helps...

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