Line Of Credit
Anyone have a good source/referral for a line of credit, or how it works (rates, terms, size, etc) these days...I am bidding on dozens of properties and it would be far faster just to buy them and flip them into mortgages after the fact and clean the line out every 30, 60 or 90 days. You can PM me if you want.
Thanks in advance
The easiest place to get a line of credit is with the bank you use for your checking and savings account. Two most important reasons is: They already know you, They would love to open up another account.
Most lines of credit with a local bank are based on prime.
Home equity line: prime
Unsecured equity line: prime plus
Terms are usually intterest only payments
Lori
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Isn't unsecured just another name for a credit card? I think anytime you need to borrow over $25k roughly, they tell you to apply for a home equity loan. I guess we're talking about bridge loans with a few points and high rates for short terms 'cause I'd need at least a mil or two
I have over 100K in unsecured credit lines. I just write out a check and deposit into my checking account or give to Real Estate Agent for down payment or hand money. I get a statement every month and it is calculated on an interest only payment. Once house is bought, ffixed and sold I can pay it off and start over with the next.
I never even had to produce a pay stub. I also have a business line of credit.
Lori
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Quote:
On 2004-04-26 09:33, dealjunky wrote:
Anyone have a good source/referral for a line of credit, or how it works (rates, terms, size, etc) these days...I am bidding on dozens of properties and it would be far faster just to buy them and flip them into mortgages after the fact and clean the line out every 30, 60 or 90 days. You can PM me if you want.
Thanks in advance
Tinman gave you adequate advice. To set up a WLOC (working line of credit) which is what you describe, and incidentally is similar to a credit card in that it is a revolving debt instead of installment, but different in that it is secured by the assets that you purchase and sell. I have 2 for my car lot, One for my retail inventory and one for my rent to own inventory. I am paying prime plus 2 (not the best and I have perfect credit, but adequate). As Lori said, your personal bank is first choice. Wells fargo and Washington Mutual might also be interested. My question to you is, What is your specific plan of action? It is not a method for 0 down for buy and hold, however it could be tremendously useful for rehab, flipping, and possibly Lease Option which could be reverted to a long term mortgage but in the latter arena of L/O you better be stronger than death in your credit file, experience, as well as have a great relationship with the higher ups in the bank. That is definitely not child's play.
Anyhow, make sure you have a written business plan to propose to your lender.
Good Luck,
Shawn(OH)