How to get Portfolio loans or Line of Credit

[Mak K.]

Hi,

So I have 3 properties under 3 different LLC. I would like to get a loan or line of credit on the portfolio. The way I want is to get a Line of credit such that it is authorized, and I only pay interest when I withdraw from it. What is this type of loan called and who does it? I called Chase and other banks and they said we can give you 80% of the equity but you pay interest from day 1 if you use it or not?

I want something like an overdraft where I can use the loan cash for buying other properties. I am ok with little high interest rates. What is the exact term and what type of lender does such loans?

[Mak K.]

Update and sharing what I learnt so far:-

I went to a local credit union and they said they give line of credit based on 80% equity. Also rates are prime plus 2.5. So as of this date you are looking at 8.5ish. Loan involves a fresh appraisal and origination fees etc. 

Another suggestion banker made was it’s easier to get a loan on a stock portfolio. It cost less, there is no Leon, and rates are prime minus 0.5 meaning as of today it is 8%. the benefit is it did not require Lein, home insurance, etc etc making it cheaper to acquire