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Creative Real Estate Financing

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Anthony Freeman
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Andrew Freed
  • Investor
  • Worcester, MA
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Andrew Freed
  • Investor
  • Worcester, MA
Replied Sep 17 2023, 03:51

@Anthony Freeman - Yes, I got a $50K unsecured LOC from a small local bank for one of my LLCs. It's a rare product for sure, but they are out there. Mine was a simple one page application where they asked for the LLCs revenue etc and did not verify much. Usually, they offer LOC for like 20-25% of the company's revenue. The bank I used was a small bank in CT called Liberty-Bank. I hope this helps!

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Anthony Freeman
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Anthony Freeman
Replied Sep 17 2023, 05:40
Quote from @Andrew Freed:

@Anthony Freeman - Yes, I got a $50K unsecured LOC from a small local bank for one of my LLCs. It's a rare product for sure, but they are out there. Mine was a simple one page application where they asked for the LLCs revenue etc and did not verify much. Usually, they offer LOC for like 20-25% of the company's revenue. The bank I used was a small bank in CT called Liberty-Bank. I hope this helps!


 Thanks do you have any experience such as a homeowner using their home as collateral so the bank can grant you a business loan?  I have been doing some reading lately looking for real life examples thanks in advance.

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Andrew Postell#1 Creative Real Estate Financing Contributor
  • Lender
  • Fort Worth, TX
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Andrew Postell#1 Creative Real Estate Financing Contributor
  • Lender
  • Fort Worth, TX
Replied Sep 18 2023, 20:47

@Anthony Freeman if we are talking about your primary home...what's the rub against using a standard HELOC?

Lender Texas (#392627)

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Anthony Freeman
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Anthony Freeman
Replied Sep 19 2023, 03:04
Quote from @Andrew Postell:

@Anthony Freeman if we are talking about your primary home...what's the rub against using a standard HELOC?


 I like to have real world examples of everything I learn about. 

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Charlie Hardage
  • Investor
  • Nashville, TN
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Charlie Hardage
  • Investor
  • Nashville, TN
Replied Sep 20 2023, 13:12

@Anthony Freeman HELOCs are your best bet.

A lot of lenders offer HELOCs at 80% or higher LTV. A couple of years ago, lenders would offer 90-100% LTV.

Most banks and credit unions offer HELOCs and Home Equity Loans. Some offer different products like principal + interest, interest-only, fixed rate vs variable rate, or different LTVs. I personally stay away from HE Loans (called 2nd mortgages) because I can't re-use that capital llike I can with a HELOC.

A few years ago, we had $97k in equity and a 100% LTV HELOC. We were able to use up to $97k in the line of credit. We used it to get into 2 apartment syndications initially for a total of 6 syndications in the last 3 years.

Nowadays, the LTV would be 80-85% but that depends on the lender and how much equity you have.

Hope that helps for an example.

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Anthony Freeman
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Anthony Freeman
Replied Sep 20 2023, 17:30
Quote from @Charlie Hardage:

@Anthony Freeman HELOCs are your best bet.

A lot of lenders offer HELOCs at 80% or higher LTV. A couple of years ago, lenders would offer 90-100% LTV.

Most banks and credit unions offer HELOCs and Home Equity Loans. Some offer different products like principal + interest, interest-only, fixed rate vs variable rate, or different LTVs. I personally stay away from HE Loans (called 2nd mortgages) because I can't re-use that capital llike I can with a HELOC.

A few years ago, we had $97k in equity and a 100% LTV HELOC. We were able to use up to $97k in the line of credit. We used it to get into 2 apartment syndications initially for a total of 6 syndications in the last 3 years.

Nowadays, the LTV would be 80-85% but that depends on the lender and how much equity you have.

Hope that helps for an example.


 Helps alot thanks 

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Anthony Freeman
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Anthony Freeman
Replied Sep 20 2023, 17:33

Quick question did you do these HELOC on investment properties and do you see the LTV going back to 100%?

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Charlie Hardage
  • Investor
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Charlie Hardage
  • Investor
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Replied Sep 20 2023, 18:29
Quote from @Anthony Freeman:

Quick question did you do these HELOC on investment properties and do you see the LTV going back to 100%?

Yes, I used this strategy for the apartment complexes.

I think some lenders will do 100% eventually. It isn't extremely common but its likely you will see it. It also depends on how much equity you have in your home. Some lenders do have a maximum amount.

Credit unions are usually have better terms and are more flexible than banks from my experience.

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Anthony Freeman
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Anthony Freeman
Replied Sep 21 2023, 07:54
Quote from @Charlie Hardage:
Quote from @Anthony Freeman:

Quick question did you do these HELOC on investment properties and do you see the LTV going back to 100%?

Yes, I used this strategy for the apartment complexes.

I think some lenders will do 100% eventually. It isn't extremely common but its likely you will see it. It also depends on how much equity you have in your home. Some lenders do have a maximum amount.

Credit unions are usually have better terms and are more flexible than banks from my experience.


 Thank you