See if the loan option is feasible for you
First of all, think whether a home equity loan is a sound choice for you. In order to finance the property purchase with a loan, you require to own another land that has equity in it, and that way it can be used as security. For majority of the masses this other land is their home. Know that equity is the dollar amount of the home that is in your name. To get more details about how much equity you have in your house, deduct the balanced owned on the mortgage from the buying price of the house.
Get in touch with lenders
Contact various lenders to acquire rate quotes on home equity loans. Make sure you also remember to get a quote price from the lender that has the first mortgage on your house. A number of times, acquiring several loans through the same lender helps you get lower interest rates which can save you a chunk load of money.
On the other hand, safeguard the home equity loan with the lender providing the cheapest price, and buy the investment property in the case loan was taken in place of a mortgage on the investment property. Moreover, you can also get a mortgage to buy the property and then use that money from the equity loan to fix it.
Generate equity in the property, if you decide to keep it for yourself and rent it to someone else. You can build equity by paying down the mortgage, and paying off from the home equity loan. After sometime, you can take a loan in place of the investment property to finance the buy and repair of the future investment property you wish to purchase. Sell it after it has been repaired.