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    0 Replies Latest reply on Jun 21, 2008 5:31 PM by SparkysHero

    Investment Home Equity Loan

    SparkysHero Newbie
      I am a real estate investor and have been doing it for the last 15 years or so. I have always purchased properties with mortgages. I will put down around 40% of the purchase price and mortgage the remainder. This system has worked exceptionally well for me for the most part. A few months ago, I saw a piece of property and fell in love with it. I purchased it outright and have no note on it. After talking to my accountant, I learned that I am going to be slammed by the IRS on the rental income I get out of this property.
      Right now, I am in the market for more property and want to mortgage the first property and get cash out of it to use as the downpayment for another house. After much research, it looks like I want to get either a Home Equity Loan or Equity Credit Line. I have consulted several banks and all of them only offer variable rates on these types of loans. I would prefer a fixed 30 year loan for this type of loan. It seems that my only option would be a mortgage. I am trying to avoid this because I would like to avoid closing costs!

      If anyone has any suggestions or advice on where to look for a fixed rate loan that allows me to borrow equity on a property, I would appreciate it!

      Thank you!