Financing...

I'm learning that being an owner of real estate investment companies helps you learn ALOT about the financing restrictions of your local bank.

For instance, I learned over the course of the last month that my local credit union has restrictions of the following types:

A. Business Loans - Minimum loan of $25k

B. Standard Mortgage - Minimum mortgage of $10k (per house) (not based on the value of the home, but rather, the fact they will NOT do a loan under 10k).

C. Home Equity Loan (HEL) - Take as long as a mortgage to get all worked out (including the need for an appraiser), but once achieved on a property, can be borrowed and repaid over time (just like a mortgage). The rate is traditionally a fixed rate.


For me, the HEL makes the most sense, especially if you are buying auction or tax foreclosed properties (which will traditionally have a value less than $10k each and you wont have to purchase enough to get over a $25k threshold, like I was told).


Just some potentially helpful information. :)

-Tim