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.
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?
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.
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.
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.
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.