BiggerPockets

Chase might give your LLC up to a $50K credit card at a pretty good rate. They just did that for a friend.

Lines up to $50k are all underwritten like signature loans from my understanding. Above $50k the covenants and such get a lot more hairy and you will need solid income and financials to pull something down.

Business Credit Services (BCS) has a great intro program for building business credit and was started by David Gass. An advanced program is offered by The RBSL Group D/B/A Unsecuredline dot com. They have a very comprehensive "scorecard" product that rates how your file looks to an underwriter.

I have been working on my RBSL scorecard for over a year and have gone from 68.5% to 80.6% based on how I keep score using their formula. I am hoping to make it in the 90th percentile later this year and to pursue a big line next year when the banks don't blanket deny real estate investors because of their industry.

It is virtually impossible to get a bank line of credit (non-signature...or unsecured) if you are a new real estate customer right now from my experience. Underwriters are told to blanket deny you regardless of how strong your file is.

There are a few smaller local banks in Memphis were one could get a $50k line fairly easily. Considering doing it myself and lend it out at a higher rate.

Was supposed to get a 50K unsecured, but there was a problem in underwriting with the structure of another loan. They gave me 15K and offered to raise it once the other property sold. That was Hancock Bank

If you are over in East Tx. you might want to try Shelby Savings Bank. My dad has a pretty huge unsecured LOC with them.

DON'T DO IT!!!

AVOID BANK FINANCING

It is much better to establish relationships with private lenders who you can borrow from or do a joint venture.

That's the #1 thing that the Legendary Jack Miller preached - never, ever use bank financing

Jackie Lange

I have dome many hundreds of deals and never, ever used bank financing.

Every single rental property I own was bought with seller financing.

The day you start using bank financing, is the day you STOP learning how to buy creatively... with terms or with joint ventures or with private lenders.

Bank financing debt comes at a MUCH HIGHER price, you are putting personal recourse on the line!! As an investor, that's the worst thing you can do. Bank financing is exactly what got so many investors in to a lot of trouble in the last couple of years, it caused many foreclosures and bankruptcies.

As Peter Fortunato always says, if you buy with cash or with bank financing/equity lines of credit, you have checked your brain at the door.

You need to learn to make creative offers and buy with seller financing OR work with private lenders

I paid 2% for my my last PL loan!! no points, no loan fees, no credit application, no prepayment penalty, no balloons.....try to do that with a bank

Jackie

I really can't see many draw backs to instant available cash @ 4% interest. No yearly fees only pay when it's in play.

Is there long term fixed private money out there for 4-5%??? If there is I would love to get in on it!

Most the deals I come across are bank REO. Cash gets you a better deal, and often is the determining factor with multiple offers.

I do agree that LOC are a bad option for holding properties due to loan calls and principal reductions. That can sink your ship pretty quickly.

FWIW, a banker friend of mine outside of Ft. Worth offers LOCs at prime to prime + 3 (currently 3.25% to 6.25%)

He has a limited market and likes experience and collateral.

Oh so true! and not just with commercial bankers. :D

I am thinking of approaching a bank for a business line of credit of hopefully 50k, but I ll them as collateral a duplex I bought cash for 25k with repairs (probably worth that much).
Problem is, I just create my LLC recently and that duplex is the only item in my LLC.
Do you guys think it will help or work to give them the duplex as collateral in order to get approved?