Q on Equity line

Posted by on January 15, 2009, 12:12 pm

Q on Equity line
*****************************
I apologize if this is not the correct group for posting this message.
I think a few readers here may have faced this situation.

We have a rental property ( townhome) that is fully paid up.
It has been continually rented for many years.

I would like to get an equity line- just in case the situation arises
where we need cash.
I called Schwab and they indicated that they do not have equity lines
on "rental property".

Can anyone please let me know which banks / institutions offer such
lines of equity on "rental properties"?
and if so are there any pointers ie do's and dont's.

The property is in the SF, Bay Area, CA.

Thanks in advance,

Irfan Roberts

Posted by dpb on January 15, 2009, 4:09 pm

On Jan 15, 11:12=A0am, irfanrobe...@gmail.com wrote:

> Q on Equity line
> *****************************

...

> We have a rental property ( townhome) =A0that is fully paid up.
> It has been continually rented for many years.
> I would like to get an equity line- just in case the situation arises
> where we need cash.

...

> Can anyone please let me know which banks / institutions offer such
> lines of equity =A0on "rental properties"?
> and if so are there any pointers ie do's and dont's.
> The property is in the SF, Bay Area, CA.

...

http://www.bizjournals.com/sacramento/stories/2007/08/06/daily11.html

showed up in a quick google (altho the story is, as you can see, 18
months old).

It's never been a popular item for the lenders but your best bet will
probably be the bank or credit union you have a long term relationship
with already. Be prepared for extreme scrutiny and given the current
state of lending even if can find a willing lender it's unlikely to be
inexpensive. They're going to evaluate it as a business/commercial
loan, not personal in all likelihood unless you have a developed
relationship in a (relatively) small, personalized institution. If
it's one of the big boy's branch offices and all you have had is a
checking account w/ routine activity you're probably SOL in the
current environment.

--

Posted by jloomis on January 16, 2009, 9:38 am

Have you tried Wells Fargo?
If it is property you own, and regardless of the use, I do not see why an
equity line cannot be established.
jloomis

>Q on Equity line
> *****************************
> I apologize if this is not the correct group for posting this message.
> I think a few readers here may have faced this situation.
> We have a rental property ( townhome) that is fully paid up.
> It has been continually rented for many years.
> I would like to get an equity line- just in case the situation arises
> where we need cash.
> I called Schwab and they indicated that they do not have equity lines
> on "rental property".
> Can anyone please let me know which banks / institutions offer such
> lines of equity on "rental properties"?
> and if so are there any pointers ie do's and dont's.
> The property is in the SF, Bay Area, CA.
> Thanks in advance,
> Irfan Roberts

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