Anton the loan officer called me today. He said it was a good thing I informed him of my plans to add units to our existing properties. It would be tough to get a construction loan with a HELOC on title. He mentioned that lenders finance based on loan-to-cost with a max of 70%. That means I have to come up with the other 30%.

Then I contacted my main loan officer, Jim, whom I’ve worked with for twenty years. He’s still looking for some construction loan options. He asked me why I don’t apply for a HELOC and use that? For Pete’s sake, now I’m confused. I’m being told by one person (attorney) that I shouldn’t use HELOC funds for a major change to property because there’s probably something in the loan docs about altering the property significantly and potentially decreasing the value. I have now emailed the attorney and Cc’d Jim asking why the construction loan over HELOC recommendation.

I need to get my priorities straight, nail down a goal, and write out a plan to calm my brain.

It’s a learning process.