Looking for an Investment Property HELOC?
If you’re looking for a way to grow your investment property portfolio, you might be feeling discouraged by the lack of options on the market. But don’t give up just yet. We specialize in investment property loans and have created an Equity Leverage line program that is the closest thing to an Investor HELOC you can find.
With our Equity Leverage line, you can tap into the equity from up to four investment properties to purchase non-owner-occupied investment properties. This program is designed specifically for investors like you who are serious about growing their portfolios. This is similar to an Investor HELOC, but unlike an investor HELOC, which can be used for anything, our Equity Leverage loan can only be used to purchase a non-owner-occupied investment property. The goal of our program is to allow investors to leverage your equity to purchase an investment property or properties for 100% of the purchase price.
If you’re serious about growing your investment property portfolio, don’t let the lack of options to access the equity in your real estate portfolio (and keep your existing low-rate loans) hold you back. Let us help you achieve your goals with our Equity Leverage line program.
This product is currently available in Texas but we have a similar offer in other states.
Why Get an Equity Leverage Line?
Access Your Equity
Access Equity from your current rental properties to purchase more rental property.
Aquire Property at 100% of the Acquistion Cost
Close quickly and acquire investment property at 100% of the acqusition cost.
Keep Existing Low Rate Loans
Access your equity without having to refinance your current low rate loans.
Win by Paying with Cash
Beat out other investors by purchasing new property with cash.
Fund Your Rehab
Purchase properties that need repairs at 100% of the acqusition cost.
Close Quickly
Beat other buyers and win by closing quickly.
More Information on Equity Leverage Lines
Why get an Equity Leverage Line?
- Access Your Equity
- Acquire investment properties at 100% of the acquisition cost
- Keep Your Existing Low-Rate Loans on Existing Properties
- Beat Other Buyers by Paying with Cash
- Fund Your Rehab
- Close Quickly
Equity Leverage Line Parameters
- Secured by One or More of your Investment Properties (up to 4 properties)
- Keep Your Existing Low-Rate Loans on Existing Properties.
- Credit Score – 680+
- Acceptable Borrower Types – Individual, LLC, or Corporation
- Approved Acquisition Property Types (single-family residences, 2-4 unit residences, townhomes, and PUD’s)
How Does it Work?
- Apply for Equity Leverage Line
- Sign Equity Leverage Line papers
- Purchase new Property for 100% of the acquisition cost
- Fix up the property and either sell it or rent it.
- If you keep the property for the long term, we will refinance you into a Long-Term Conventional Loan.
- Once you sell the property or refinance, your Equity Leverage Line will be freed up so you can purchase your next property.
Can You Get a Mortgage For Your LLC?
Yes, but should you? We provide LLC loans for rental property, but there are other ways to legally protect yourself that offer financial benefits. LEARN MORE LINK HERE.
I’ve worked with Jay Hurst on several loans. Jay is extremely knowledgeable and helpful, and was able to advise me on the options for my recent purchase. Great guy to have on your side, and great rates!
Hurst Lending was very easy to work with and stayed in constant contact with me throughout the loan process so I never had to wonder what the status of the loan was.
What is an Equity Leverage Line?
With the recent surge in home values, investors have amassed a large amount of home equity. Furthermore, with interest rates at record lows until recently, investors are sitting on incredibly low fixed interest rates. There is a lot of money that can be invested in new cash-flowing properties.
So, how do you gain access to all that locked-up equity without refinancing your current record-low fixed rate?
Anyone who has looked for a way to extract that pent-up equity to reinvest while keeping their current first lien in place has discovered that their options are limited. To be honest, a borrower has few, if any, options for obtaining an Investment Property HELOC. Hurst lending offers an innovative product called the Equity Leverage Line. A memorable moniker? Perhaps not, but the product does allow you to leverage your equity in your current non-owner-occupied properties.
The equity leverage line allows you to use the equity in your non-owner-occupied properties without making payments until you have a use for the funds. In this way, it functions similarly to a line of credit. However, it is not the same as a home equity line of credit on your primary residence because the funds must be used to purchase more non-owner-occupied investment properties. But that’s okay because that’s exactly what you want to do!
How does the Equity Leverage program work? We will use your equity in your current non-owner-occupied property portfolio, which can include one or more properties (up to four properties on your line). Depending on the amount of equity in these properties, we will provide you with a line of credit with no payment until you draw funds to purchase a new investment property. At that point, we attached a lien to a new property, and the payment began to accrue.
We will fund up to 100% of the purchase price of the new property if you have sufficient credit. You can use the unused equity in those properties. This can be in first or second lien position. You are not required to give up your current record-low 30-year fixed interest rate. Once you have drawn the funds to purchase the new property, you have a year to repay the loan either by selling the property or refinancing into permanent financing. When you repay the credit line, either by selling or refinancing, the lean on your portfolio is released, and you can borrow again. Rinse and repeat. The ultimate buy, rehab, refinance, rent repeat, or BRRRR product!
Use our Equity Leverage Line to Buy, Repair, Rent, and Repeat.
HELOC Case Studies
Our Equity Leverage program lets you use equity to buy more rental property. Examples are shown below.
Use your line to acquire and rehab
Investors use the funds from our Equity Leverage Line to purchase a property that needs rehab and because we will lend up to 100% of loan-to-cost, you have the line of credit to buy and rehab the property. Once the rehab is finished, you either sell the property or refinance the property into long-term financing.
Use your line to buy below market value
Investors can use our Equity Leverage line to locate and purchase properties below market value. We will allow the purchase at 100% of the sales price. These sales often must be very quick and making a cash offer is vital to win the deal. Our Equity Leverage line allows you to purchase the property in cash and win the deal. Once you acquire the property, we quickly turn around refinance using the market value of the property which allows you to purchase a property with very little or no cash in the deal.
Use your line to buy a portfolio of properties
A great way to purchase properties below market value is by purchasing a portfolio of properties from the same seller. It is easier for a seller to sell several properties to one buyer and they are sometimes willing to reduce their price for a buyer who can purchase in bulk. We can fund 100% of the portfolio of properties from the same seller quickly. The seller can cash out quickly and you can acquire a group of properties at one time.
Use your line to pay cash for a property
Access to our Equity Leverage Line to allow you to close with cash in any situation (e.g. Dominate with a Cash Offer). This will often give you favorable terms over competing offers that have financing contingencies that are not attractive to sellers.
Contact us to set up an Equity Leverage Line to BRRR (Buy, Repair, Rent, and Repeat).
How to Access Investment Property Equity Without Refinancing Low-Cost Debt
Rental property investors often have significant equity. When buying a new property, this equity can be hard to obtain. A standard investment property loan can refinance a single rental property for cash. Unfortunately, an investment property may fall through during the 30+ days it takes to secure a cash-out loan, and you will forfeit your low-cost loan rate.
Our Equity Leverage line lets you borrow against one or more of your investment properties (up to four). We establish a first or second lien on your investment properties and keep your low-rate loans. Our Equity Leverage Loan requires no refinancing.
We’ll finance 100% of the new property’s price. Leverage underutilized equity. Your portfolio can secure the Equity Leverage line. You can keep that record-low 30-year fixed interest.
About Hurst Lending
We have been helping our customers buy, sell, and refinance their homes since 2006. Our personalized approach to the home buying process includes a suite of services that solve common hurdles in the home buying process. Have you ever experienced the frustration of trying to buy before you sell; Losing your dream home in a bidding war; Trying to get a No-Seasoning Cash-out loan; Being unable to obtain a mortgage because your new or old house needs modest repairs; or simply because you prefer using our funds to close quickly without having to liquidate other investments? Our Industry-leading suite of short-term loans solves these issues. We also offer a suite of real estate investor loan products and a full suite of conventional, VA, FHA, construction and traditional home loans.
