New York, NY · Member since 2017 · 4 posts · 0 votes
This site's Hard Money Lenders list is awesome. It would be great to see something similar for real estate lines of credit. For example, I am looking for a $1 million line of credit.
Does anyone know where I can obtain a line of credit? If there is a list of companies that provide them that would be very helpful. Maybe we can create a list together through posts in this discussion : )
Lines of credit typically come from relationship banking in my experience. I wish there was an easy answer but I dont think there is, you need to just get out there and talk to bankers
Is this for individual or commercial? Another tip a lender gave me is that your net worth or assets have to to be close to the line of credit you are seeking or have a partner or cosigner whose is.
Is this for individual or commercial? Another tip a lender gave me is that your net worth or assets have to to be close to the line of credit you are seeking or have a partner or cosigner whose is.
Julius,
That was a good tip. We work with lenders who offer "LOC"s but the majority of them are unfavorable terms-wise compared to simply working with a HML for repeat business - multiple transactions at a time and can move quickly - we often referred this method to borrowers and they're glad they did.
Now, to the comment above, I would agree that where the gold in LOCs come in are with your banking relations (and assets of value to leverage). One LOC we have available for our borrowers is an asset- based LOC, but they can collateralize very unique assets - such as art collections, car collections, gold etc. They're primary collateral for higher leverage though is stocks, bonds, or other more liquid assets. But their rates are great - 4.18-4.5% this week and it is only on money that is currently drawn from their line. Minimum $3M on assets and you'll receive a $1M-$1.5M LOC.
There are a number of programs out there, not everyone has $3M on assets to leverage against, but unsecured LOCs can often be costly and wave the benefit of efficiency.