I work at a company that does construction financing and as a sort of bonus to the staff we get to fund one "office project" each year where we split the risk and profit amongst ourselves. This is my first year participating in the office project so recently i went to the bank and got a line of credit for $190,000 at 4.5%. Most of this money will be invested in the office project 6 to 9 months of each year. Which leads me to my question:
Whats the best use of $190k credit line for only 3 to 6 months of each year?
After the 2018 project is finished should i just pay off the line and wait to use it again for the 2019 project? That seems boring...
Thank you for taking the time to help me come up with some ideas!
Of you have to cash out in 9 months then buy a below market property, rehab a little and then sell it in August. Watch what rehabbers are doing in your market to see and evaluate to find one applicable.
Thanks for taking the time to help! issue is that the office project will use up the credit line 6-9 months a year, so that leaves only 3 to 6 months to do the flip. Is there a strategy to flipping that people are able to execute in as little as 3 months? Id love if you had a keyword to google or something so that i can look further into it.
Biggest thing is that you need to be confident of your team and have it in place before finding the deal. In this case, it is not unheard of to do a quick flip in 3-4 weeks, and then you sell it. Depending on appraiser schedules you may get it closed in 3.5 weeks. So total turn around time from purchase to sale closed, 6.5-8 weeks. Cash is king, so find a way to leverage the most out of it. The hardest work will be finding people to have conversation with regarding potential deals.