Newcomer to REIN here. Just signing up for the Quick Start. My burning question right now (as I can`t wait to find out from my mortgage broker) is what is the best strategy to access the equity build up in my current home to use for investment? This is unpaid equity. I bought my house almost 3 years ago. There is close to $150k that I could use for leveraging. I am newly self employed so to the banks I`m sure I don`t look like I bring enough to make payments on a 2nd mortgage but I`d hate to have to sell to get the money but perhaps the only way. The other stickler is that I have also accumulated $50k in debt since purchasing my home because of a new baby and change of career etc. Would ike to use this equity to pay off debt and the rest for investment. Any suggestions or recommendations on how to access this money? I really don`t want to spend the rest of the year paying off the debt and then start other investments as I will be loosing "time".
Accessing our Equity
- Thread starter Dabbler
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A secured line of credit at Prime is a definite possibility, it could be used to payoff your debt and for investment. There are several other factors that would need to be considered including your credit history and your Loan To Value. For example, would $150,000 bring you to a 75% LTV or 100% LTV?
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Accessing equity in your primary residence is one of the easier loans to get approved. It may be slightly more difficult to get a second mortgabe, but you would certinaly be able to rewrite your first mortgage, and trasnfer it to a readvancable mortage/LOC product.
Be sure that your mortgage broker understands your goals and objectives with respect to real estate financing. Making the right decision today will make all the difference. While you may be able to do this with your existing institution, you may be faced with paying a penalty in order to get the right product today. It may be worthwhile in the long run but be sure you get all your options investigated.
Be sure that your mortgage broker understands your goals and objectives with respect to real estate financing. Making the right decision today will make all the difference. While you may be able to do this with your existing institution, you may be faced with paying a penalty in order to get the right product today. It may be worthwhile in the long run but be sure you get all your options investigated.
QUOTE (kboughen @ Apr 8 2008, 08:00 PM) A secured line of credit at Prime is a definite possibility, it could be used to payoff your debt and for investment. There are several other factors that would need to be considered including your credit history and your Loan To Value. For example, would $150,000 bring you to a 75% LTV or 100% LTV? Thanks for your response. I just printed off copies of both my partner`s and my copy of our credit reports. Funny, when we financed this home we are in presently three years ago, we both had reports with scores of 747 and 736 or something close to that. There were no "red flags" on our reports. However to our/my suprise my credit score has gone up so I`m in the Good category even though I`ve accumulated more debt under my name and hardly have income to support it. My partner who makes the supporting dough has failed to make two payments on one of his credit cards that he uses for business.During the time of when we had our baby. Otherwise we both don`t have any history of missing payments. His score obviously took a nose dive to poor. So now, I`m sure our picture on whatever we want to do to get this debt dealt with changes. So now, would be still be able to get a LOC based on our new information? How long does it take to repair credit? If we were able to get a LOC and pay off our debts, how quickly would this affecting my partner`s rating? I know that the 2 strikes will stay for some time. I`m now more worried about our future financing for our investment properties as this will be on our his record for 7 years?
- Joined
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- 13,879
QUOTE (Dabbler @ Apr 8 2008, 07:38 PM)
Newcomer to REIN here. Just signing up for the Quick Start. My burning question right now (as I can't wait to find out from my mortgage broker) is what is the best strategy to access the equity build up in my current home to use for investment? This is unpaid equity. I bought my house almost 3 years ago. There is close to $150k that I could use for leveraging. I am newly self employed so to the banks I'm sure I don't look like I bring enough to make payments on a 2nd mortgage but I'd hate to have to sell to get the money but perhaps the only way. The other stickler is that I have also accumulated $50k in debt since purchasing my home because of a new baby and change of career etc. Would ike to use this equity to pay off debt and the rest for investment. Any suggestions or recommendations on how to access this money? I really don't want to spend the rest of the year paying off the debt and then start other investments as I will be loosing "time".
Some thoughts on this fine long weekend:
Don't dabble in real estate: you're either in and treat it as a business .. or don't get in as you may sink !
Don't get a 2nd mortgage especially while you have personal debt and while you are learning !
Pay off your (expensive) debt first .. then invest the rest when you have become an expert at something after MUCH research in a small area of specialization !
yes, get a Home Equity Line of Credit up to 75% of house value .. even if you do not need it. At prime or occasionally less than prime (4.75%) you can pay all expensive debt !
read more here: http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html
Happy & Successful investing .. (not dabbling !!)
Newcomer to REIN here. Just signing up for the Quick Start. My burning question right now (as I can't wait to find out from my mortgage broker) is what is the best strategy to access the equity build up in my current home to use for investment? This is unpaid equity. I bought my house almost 3 years ago. There is close to $150k that I could use for leveraging. I am newly self employed so to the banks I'm sure I don't look like I bring enough to make payments on a 2nd mortgage but I'd hate to have to sell to get the money but perhaps the only way. The other stickler is that I have also accumulated $50k in debt since purchasing my home because of a new baby and change of career etc. Would ike to use this equity to pay off debt and the rest for investment. Any suggestions or recommendations on how to access this money? I really don't want to spend the rest of the year paying off the debt and then start other investments as I will be loosing "time".
Some thoughts on this fine long weekend:
Don't dabble in real estate: you're either in and treat it as a business .. or don't get in as you may sink !
Don't get a 2nd mortgage especially while you have personal debt and while you are learning !
Pay off your (expensive) debt first .. then invest the rest when you have become an expert at something after MUCH research in a small area of specialization !
yes, get a Home Equity Line of Credit up to 75% of house value .. even if you do not need it. At prime or occasionally less than prime (4.75%) you can pay all expensive debt !
read more here: http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html
Happy & Successful investing .. (not dabbling !!)
QUOTE (thomasbeyer2000 @ May 18 2008, 08:07 AM)
Some thoughts on this fine long weekend:
Don't dabble in real estate: you're either in and treat it as a business .. or don't get in as you may sink !
Don't get a 2nd mortgage especially while you have personal debt and while you are learning !
Pay off your (expensive) debt first .. then invest the rest when you have become an expert at something after MUCH research in a small area of specialization !
yes, get a Home Equity Line of Credit up to 75% of house value .. even if you do not need it. At prime or occasionally less than prime (4.75%) you can pay all expensive debt !
read more here: http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html
Happy & Successful investing .. (not dabbling !!)
Thank you Thomas for your input. First off, my screen name, Dabbler, may be misleading. I'm an artist and dabble in paints. Thats my profession. It was a hobby for many years while I was an insurance broker and have recently hung my hat to paint full time. Now I also have time to seriously look at real estate -- the investment side as I have more time to contribute. Still at the beginning stage. Both my partner and I have owned real estate previously -- I had a condo which made me nil (owned for 9 years..bought high and it took 9 years to recover. Meanwhile paid endlessly in assessments for this and that and in the end I sold by myself in order that I wouldn't have to pay realtor fees. I know it was location and timing.If I hung on and rented it out, I would have made $200k on it) My partner sold two pieces of land that he had so we could sustain ourselves when we did our big move to the Sunshine Coast. We bought at the right time here and have equity in our home but unfortunately have dug ourselves into a debt while my partner builds his business up and I had a baby.EVen though we hadn't much luck with real estate, we know it was about circumstances. We do believe that investment properties will and can be lucrative. We are doing much research now and hope to buy soon...when the right opportunity presents itself.
Some thoughts on this fine long weekend:
Don't dabble in real estate: you're either in and treat it as a business .. or don't get in as you may sink !
Don't get a 2nd mortgage especially while you have personal debt and while you are learning !
Pay off your (expensive) debt first .. then invest the rest when you have become an expert at something after MUCH research in a small area of specialization !
yes, get a Home Equity Line of Credit up to 75% of house value .. even if you do not need it. At prime or occasionally less than prime (4.75%) you can pay all expensive debt !
read more here: http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html
Happy & Successful investing .. (not dabbling !!)
Thank you Thomas for your input. First off, my screen name, Dabbler, may be misleading. I'm an artist and dabble in paints. Thats my profession. It was a hobby for many years while I was an insurance broker and have recently hung my hat to paint full time. Now I also have time to seriously look at real estate -- the investment side as I have more time to contribute. Still at the beginning stage. Both my partner and I have owned real estate previously -- I had a condo which made me nil (owned for 9 years..bought high and it took 9 years to recover. Meanwhile paid endlessly in assessments for this and that and in the end I sold by myself in order that I wouldn't have to pay realtor fees. I know it was location and timing.If I hung on and rented it out, I would have made $200k on it) My partner sold two pieces of land that he had so we could sustain ourselves when we did our big move to the Sunshine Coast. We bought at the right time here and have equity in our home but unfortunately have dug ourselves into a debt while my partner builds his business up and I had a baby.EVen though we hadn't much luck with real estate, we know it was about circumstances. We do believe that investment properties will and can be lucrative. We are doing much research now and hope to buy soon...when the right opportunity presents itself.
- Joined
- Aug 30, 2007
- Messages
- 13,879
QUOTE (Dabbler @ May 19 2008, 11:36 PM) ... we did our big move to the Sunshine Coast. We bought at the right time here and have equity in our home ...
TON OF POTENTIAL @ Sunshine Coast ! Buy as much as you can ! It is so cheap still ! buy anything with water views .. ugly ! fix it up .. rent it .. then re-fi or sell it !
QUOTE (Dabbler @ May 19 2008, 11:36 PM) ...when the right opportunity presents itself ...
or when you CREATE one ??
TON OF POTENTIAL @ Sunshine Coast ! Buy as much as you can ! It is so cheap still ! buy anything with water views .. ugly ! fix it up .. rent it .. then re-fi or sell it !
QUOTE (Dabbler @ May 19 2008, 11:36 PM) ...when the right opportunity presents itself ...
or when you CREATE one ??
- Joined
- May 20, 2008
- Messages
- 14
Be sure that your mortgage broker understands your goals and objectives with respect to real estate financing. Making the right decision today will make all the difference. While you may be able to do this with your existing institution, you may be faced with paying a penalty in order to get the right product today. It may be worthwhile in the long run but be sure you get all your options investigated.
Finding the right Mortgage Broker is a key factor. Any referrals for a Toronto based, REIN approved broker would be greatly appreciated. I`ve been working with my guy for 3 years (investment property and flips) but since the April Quickstart I`ve been realizing how critical the right "team member" is. I`ve bought a triplex this month but I think I spooked my guy when I said I wanted to buy another within 2-3 months (based on the Fundamentals, and Scorecard of course) using my Home Equity like "Dabbler". I know, I know "Join REIN!!" but I`m trying to walk before I run.
Finding the right Mortgage Broker is a key factor. Any referrals for a Toronto based, REIN approved broker would be greatly appreciated. I`ve been working with my guy for 3 years (investment property and flips) but since the April Quickstart I`ve been realizing how critical the right "team member" is. I`ve bought a triplex this month but I think I spooked my guy when I said I wanted to buy another within 2-3 months (based on the Fundamentals, and Scorecard of course) using my Home Equity like "Dabbler". I know, I know "Join REIN!!" but I`m trying to walk before I run.