Personal line of credit for flipping funds

10 Replies

Hi fellow BPers. I am looking for a recommendation for a company that does unsecured personal lines of credit to speed up my  growth rate in my flipping business. I previously used a company for my first flip that used credit cards at 0% intro interest rate to complete my first flip. I have no interest in repeating  that experience. I'm looking specifically for personal lines of credit and not any more credit cards. My credit score is around 720 and still recovering. In my market I can do a flip with roughly 80,000 so I'm  looking for a minimum of $100,000 to be safe.   Any insight would be greatly  appreciated.  

I may be able to refer a lender for unsecured business credit lines that keep your personal credit separate. Dm me if you'd like. Best,

@Drew Cameron

Why do you want to have a person LOC?

If you have an LLC or INC you can get a business LOC which would not be on your personal credit report. Shop in small local banks. They usually have products like that.

Hope this helps. 

I started a business entity and applied for business credit. It doesn’t reflect on your personal. I haven’t bought anything using this method yet but everything is in motion. Drew could you share your experience with using credit cards?

Personal lines will mess up your utilization which accounts for 30% of your personal credit scores. You’d do better applying for business lines with that credit score which don’t show up on your personal credit reports (unless you default). Might not be a bad idea to look into building corporate credit as well which doesn’t require a personal guarantee.

I am beginning to think I should go all-cash on rentals and do a BRRR where HUD pays me back 75% LTV. From what I'm reading, Personal LOC seems to hit your personal credit rating rather badly and Business LOC can't be used because HUD will not deal with businesses. Anyone care to comment? Am I wrong in my thinking? With zero dollars in it, after being paid back, my CoC ROI is huge because of a $0 base.

Can anyone name a reputable short-term lender that will loan to a flipper?  Their interest rate must be astronomical.