Banks have been tightening their lending standards for a while now, and investors are finding it harder and harder to find lenders willing to give loans on rental properties. Today’s first caller has contacted 30 banks to find a HELOC on an investment property, and still came up empty handed. What should his next move be? That’s the first question I’m answering on this Q&A episode!
On this episode of Investing in Real Estate, I’m answering three of your questions on finding a HELOC for a rental property, how to decide if you should pay off mortgages, and the best way to tap into equity on a rental property. I’m also giving an update on the economy, the middle class, and what smart investors can do to protect themselves during this time.
On this episode you’ll learn:
- How to find a lender that will work with investors.
- What to consider about paying down mortgages.
- The best way to tap into equity on a rental property.
- And more!
How to Find a Lender That Will Work with Investors
I’m a strong believer in the idiom, “where there’s a will, there’s a way.” I know that it’s harder right now to find banks willing to work with investors, but they do exist. Contact as many banks as possible, reach out to my friend Dan Kraus at Churchill Mortgage, and try a service like Rocket Mortgage. If all else fails, consider going the private money route by searching for lenders on LinkedIn.
What to Consider About Paying Down Mortgages
Deciding on whether to pay off your loans is a personal decision. Some people love to have no debt. Personally, that’s not me. I don’t mind having mortgages on my rental properties. Here’s why: mortgage interest is a tax deduction so when you pay down your loans, you’re left with more taxable income.
However, there’s a way to do this strategically, especially if your plan is to finance more rental properties and to grow your portfolio. Check out my book on How to Pay Off Your Mortgage in 5 Years for specific strategies and things to consider.
The Best Way to Tap Into Equity on a Rental Property
I’m a big fan of using a HELOC to tap into the equity on an investment property. The best place to start is by contacting local banks. As I mentioned earlier, it can be difficult right now to find lenders, but with enough tenacity it can be done!
Ask Me a Question at morrisinvest.com/clayton
Episode Resources
Book a Call with Our Team
Dan Kraus at Churchill Mortgage
Rocket Mortgage
How to Pay Off Your Mortgage in 5 Years
morrisinvest.com/Clayton
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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