It’s hard to find a bank that will do a home equity loan on an investment property.
But let’s imagine–just for a second–that you could find that bank.
What would they let you do? How much would they let you borrow?
What LTV (loan to value) would they let you borrow up to?
Here’s the answer:
Whatever their rigid policy and procedure manual says they will.
There’s no human discretion. No negotiation.
Just charts, numbers, tables and rules in a manual.
And those rules would have a number that represented total LTV. Let’s say that number is 80%.
In other words, if you owed, say, 65% of the value of your property on your first mortgage, they’d let you borrow another 15%, for a total of 80%.
But that would leave that remaining 20% of your equity untapped.
This is a missed opportunity. There’s equity still sitting there not being used to grow your portfolio.
The thing about equity is that you don’t HAVE to use it. I’m certainly not telling you that you need to leverage every penny of equity.
But my belief is that you should be able to do what you want to–not what you’re told you can do by an institution.
So instead of turning to banks for these home equity loans, what you need is a different set of tools and resources.
A different set of strategies and tactics that let you get access to all the equity you decide you want access to.
Because that puts your destiny in your own hands. And that’s what I want for you.
