Using Asset Based Line of Credit For DSCR.

[Daniel Honovic]

I have been active in realestate investing for about 10 years.  I killed my self to turn a property for the last 10 years and finally had a break thru. 

My First Property back in 2018 i went after it with my own cash and a conventional mortage, I was young dumb and... well you know the rest.  I was working full time and did the renovations all on my own, even when i didnt know what I was doing.  Not knowing any better i ran up my credit cards to the tune of 50K and depleted my cash which was another 25K.  

Luckily i was abele to refinance using a standard cash out refi and recoup enough money to pay off my debt and finish the property. 

I then did this again recently but becasue of the damage to my credit score, I could not get a refi thru my previous lender even tho i was trying to do a DSCR. My credit was down to a 560, i couldent get the loan and i was fighting to pay off my debts to fix my credit, i even used UQual (total waste) to help fix my credit. After 6 months, i paid off 10K in CC debt and my score got up for about a 640.

And my lender kept viging me the run around whiel i contuned to pay UQual to do i dont know exactly what to this day.  And the lender just kept leading me on, insisting i needed a better credit score, i felt hopeless.   

Then I found Rob White with Launch Financial (518) 852-1269. He instantly changed my goals into reality with his solution based appproach. 

We did the DSCR cash out refi and it all went smooth as can be...

Enter the Asset Based Line of Credit.... I was planning on buying another property ASAP, i had several on my list and was ready to pull the trigger.  Before making any moves i contacted my financial advisor who reccomended i give him all the cash and take the Asset Based loan. 

All went smooth until the closing, because the line of credit was so new i could not get a statment. This lead to the account not being verified prior to closing.  I used the loan to fund the closing and then all hell broke loose. The Lender would not accept the money even tho it was in the escro because it wasnt verified and also comes thru as a "Note" which to them is a loan. 

I had to cancel the loan account, have the closing attorney refund the loan account, then have the loan account closed and have them relase the money so i could pull the money out of my investment account. A series of events that  I ignorntly thought would take a day or two. 

With the Grace of god and alot of expediting it got done at the final hour. 

Long story short, it is possible  but you need to do it over the course of a few months not 2 weeks like i did. 

Put your money in the investment account, apply for the line fo credit.  

Transfer the anticipated closing and down payment ammount into your verified checking account and let it sit for 3-4 months.  

then you can use it to fund the loan with out any red flags.