I am looking to borrow as much as possible on my real estate holdings to add working capital to my business and am looking for the best ways to do so. I have a house worth $750,000 and I owe $400,000. I also have another house worth $200,000 and I owe $120,000. I have not had any luck borrowing over 100% due to the high value of my first home. Are there any other routes that I could take. I am looking for around $500,000 to borrow in total.
I see two possibilities for you right now, I am sure the others can think of other idesa for you.
a) Sell you expensivehouse. That is a sure way to take the equity out and have it available to you.
b) Start a corporation. Get an EIN number. Wait for the business credit card applications to start rolling in. Apply for 2 a month.( this way will take longer, but assures that you will have the credit you need wheneveryou you do deals)
c) Find a credit/money partner that you can work with.
d) Hard money lender(maybe)
ok i came up with 4 ideas, hope this helps.
I have not had any luck borrowing over 100% due to the high value of my first home… ?
Do you have a legitimate Appraisal? Generally, you wouldn’t be turned down due to your homes value unless it has been inflated.
What’s your credit score?
You should be able to max out your LTV’s (100%) by cashing out on both property’s. This will not get you all of the monies that you are looking for. However, it is a start.
You should not have any problems getting this done through a B lender.
Obviously, it depends upon your parameters. (i.e. credit score, documentation type, etc.)
As Jason mentioned previously, LTV’s over 100% are very difficult.
You can’t go over 100% on either property…why? Many lenders will allow 100% and have a max cash in hand amount of 150K-350K, but when you start looking at 115/125% products the max cash in had amount drops to around 25k.
There are some other options…
You cash out your two properties to 100%…Let’s assume that you walk with the full amount…$430K. You say that you need $500K for your business. One way to make up the difference is to borrow against your business recievables. If you business can show atleast $35K/month in Visa and Mastercard transactions there are lenders that will give lend you the $70K.