How to get an Unsecured PLOC?

Question

Hey Folks!

I’m 27 and I own two cash flowing rental properties. My income is roughly $170,000 pre-tax from my W2 job including salary, bonus and stock + income from my properties. I have 0 debt (besides the mortgages on my two rentals) and my credit score is around 790-800.

I’d like to get creative and do more value add / BRRRR properties, but in the market I’m investing in, scooping up the property with a cash offer is really effective.

When buying turnkey/tiny fixers, I just finance with conventional loan of 20% down. But I’d like to try to accelerate my acquisitions.

An unsecured PLOC would allow me to buy in “cash”, rehab, and refinance. At ~11% interest, this seems like a dream. Especially, since I could recycle the PLOC a few times over the duration of the line.

The problem is, for some reason I can’t get approved! Over the past year, I’ve applied for a PLOC a couple of times with banks like Wells Fargo and Suntrust that advertise unsecured PLOCs up to 100k (plenty for my market) and I keep getting denied.

Anyone out there have access to a PLOC and have any tips? I feel like I have the income and the credit, but I can’t seem to get ahold of what I need.

Thanks for any advice.

David L. · Answer

@Connor Mckelvey

It’s hard to say why you’re getting declined. Hell have the time the employees can’t even tell you. All they do is plug numbers into an algo and it spits out the result. You’ll have better luck building a relationship with a local bank. National companies like Wells Fargo you’re just numbers on a paper to them instead of an actual person.

Jeremy Hackenberg · Answer

Do you have much equity in the rentals? I wonder if they want a larger amount of collateral. It might be easier to get a HELOC on one of those rentals if that would be possible and use it for the same thing with a lower interest rate.