Personal line of credit for flipping funds

Personal line of credit for flipping funds

Lender · Peabody, MA · Member since 2015 · 82 posts · 49 votes

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.  

0Reply
19 views

Most Popular Reply

Rental Property Investor · San Diego, CA · Member since 2018 · 53 posts · 22 votes
8y

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?

See this reply in the discussion

10 Replies

Jump to latestLatest
  • Commercial Real Estate Financing Advisor · Walnut Creek, CA · Member since 2018 · 55 posts · 18 votes
    8y

    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,

  • Property Manager · Phialdelphia, PA · Member since 2017 · 511 posts · 627 votes
    8y

    @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. 

  • Lender · Peabody, MA · Member since 2015 · 82 posts · 49 votes
    8y

    @Yuriy Skripnichenko Maybe it is time for me to look into an LLC. I was planning on starting one later on down the road, but if I can get more capital than I'll look into it now.

  • Rental Property Investor · San Diego, CA · Member since 2018 · 53 posts · 22 votes
    8y

    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?

  • Memphis, TN · Member since 2015 · 35 posts · 30 votes
    8y

    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.

  • Rental Property Investor · Miami, Atlanta & Jacksonville · Member since 2018 · 12 posts · 4 votes
    7y

    @Dee W. and @Yuriy Skripnichenko

    I'm shopping for a business LOC as well and would appreciate any bank/lending suggestions outside of the typical online ones that I usually see ie Kabbage.

  • Property Manager · Phialdelphia, PA · Member since 2017 · 511 posts · 627 votes
    7y

    @Tia K.

    I sent you a PM 

    Yuriy

  • Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
    7y

    @Yuriy Skripnichenko would you mind sending me some recommendations as well?

  • Member since 2019 · 22 posts · 2 votes
    7y

    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.

  • Durham, NC · Member since 2014 · 104 posts · 68 votes
    7y
    Hi, I have an LLC and would love to hear about some LOC options for me. Please send me info as well. Thanks!
Join the conversationCreate a free account to reply, vote on answers and follow this thread.