So the initial purchase i use my lines of credit for he purchase or the property. Then I use all my rental income and cash from my business account to rehab it and when I run out I use more of the lines of credit. Am I doing this right or what I try and use my business account to keep from going into more debt and paying more interest. What’s the best way to do all this please?
Credit/loans are how many people do the initial purchase and reno until the refinance after 6 months.
If you're making money out of the deal, increasing equity, and getting most/all of your financed money back, you're doing it right.
You can always look for cheaper loans or hard money lenders if you're using credit cards with high rates. Also, I assume you're giving yourself some padding too in case things take longer or cost more.
But all in all, it sounds like you're doing fine.
I don’t think I have to wait 6 months I can use my lines of credit from bank right away. Which I don’t use credit cards but only for business and pay off right away so I don’t get hit with the high interest using my lines of credit if need be which are 5% compared to credit cards which are a lot higher.
I am working to find a LOC for secondary properties we own. I think I have found some sources. I'd rather use the Line of Credit (LOC) than cards. It will cost be $99 every time I pull money out and then 4.49% on the term. No penalty to put back.
Once I find them, use a non-recourse loan for the property cash-out refi (70-75% LTV) and rent them out. That is the plan.
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