I'm looking for a line of credit to quickly purchase properties to fix and flip. I'm not interested in hard money loans/lenders--I have access to plenty of those. I'm looking for lines of credit for acquisition. Wells Fargo has such a program for commercial properties. Is anybody aware of lines of credit programs for residential fix and flip opportunities?
NOTE: I am not interested in hard money loans/lenders. Thank you!
Best option may be to organize yourself as a business and look at business lines of credit.
@Aaron K. Isn't it tough to get a line of credit on a new business? Won't a lender be using your personal info anyway? Interested in your answer as I haven't done this but when I owned my detailing business, that's what I was told when looking into it years ago.
@Grant Rothenburger yes but if this poster has a track record of flipping in the past they may be able to get it a bit easier than someone who is just starting out. Other than hard money (which they don't want) or a HELOC which may or may not be enough, I don't see many other ways to get a line of credit like they're talking about.
I have excellent credit personally and with my business, and my business (real estate brokerage owner) has great income. However I need to separate my fix and flip business from my real estate brokerage.
I don't want to deal with the hassle of getting a loan for more, or less, than I actually need, paying a ridiculous rate on that money, and having to take a 3-6 month term on it.
I need flexibility. For example, sometimes I need 85K, then I find out I actually need 93K when I start repairs. I need access to the extra 8K without moving mountains. Sometimes I think I need 175K and it turns out I need only 160K. So I'm paying interest on money I'm not using and have to keep it for 3-6 months or pay the penalty!
I need a real estate line of credit product for those of us who know what we're doing and need to move quickly, with reasonable flexibility! I need a product that let's me take only the funds I need, when I need it, at a fair interest rate for only as long as I need the funds!
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