I need to cash out on a couple of rentals, so I can buy more. I own both of the properties free and clear. What kind of financing should I seek and where.
Thanks, Ritch
Ritch,
Go talk to a couple of your local banks. Have your financial statement in hand first–your income, debts, savings, and the rental income. This doesn’t have to be an elaborate statement, just the basics for talking.
The bankers will tell you what percentage of the estimated property value that they will lend, if your statement is true.
Congratulations for having two paid -off properties! That’s what we’re all striving for. The bankers may suggest a “blanket mortgage” on your old properties and the new one. Ask about that.
Good luck and let us know what the bankers say.
Furnishedowner
Ritch,
I agree with Furnishedowner ALMOST 100%
YES…LOCAL BANKS…that’s definitely KEY!
Next, I’d prepare a binder with your financial statements, last 2 years tax returns, 3 months bank statements, basically EVERYTHING that you think they’d need anyway. Trust me, you will BLOW THEM AWAY! A little bit of “extra work” will go a LOOOONG way, especially in this market. That “tidbit” is actually one of the keys that enabled me to succeed in a big way AFTER I had to declare Bankruptcy!
Press on my friend,