Business line of credit (@ 5%)

2 Replies

Hi All,

I've seen some posts about using a HELOC as start-up capital. Has anyone used an unsecured line of credit to make their first investment? I have a $200k LOC at 5% which is renewable each year. I am subject to interest rate changes and call risk. I was wondering if a strategy has been mentioned like this before on the forums. Could I borrow from my LOC, make an all-cash offer (and hopefully get a better price!), and then take out a HELOC on the property to pay off my LOC? Any advantage to this strategy?


seems to me that works.

I have had the same set up with my bank for years.

little bigger loan size than yours.

but one loan is an unsecured loan to go shopping.. the second half of the facility is to secure it up once they have the apprasial.. money comes in on the secured line and pays off the unsecured LOC .. now this is a flipping line not a buy hold line.. but I could refi out and keep as rental if that is what i wanted to do..