I was wondering how many of you use a credit line to buy properties. I have been thinking about looking into obtaining one, but I don't know the details. What are the benefits/drawbacks? Muchas Gracias

I have an associate in Chicago that has LOCs for real estate investing. It will build your business credit (do you have a DNB #) . One purpose is for rehabbing/paying contractors. It is based on your personal credit but it will build your business credit.

Would you happen to have the info of where your associate got those LOC's in Chicago? That's the market I am in and any help would be beneficial. Thank you!

@Matt Good those banks probably report to fico so maxing out your credit lines could affect your fico during the time you have the money out. other than one I had with WAMU now chase all of mine are with community bank and do not report. I would never get a conventional loan if they had any clue as to how much credit I have LOL just broke ground on my 27 homes in Gresham and signed a 4 million dollar loan... that would hammer your fico :)

@Matt Good that's what the unsecured lines are for.. not to just establish them and never use them. and if they are with your local commercial banks here in Oregon like mine are.. then they don't show on your fico.. so there is no worry of hammering your fico ... unlike those that espouse using credit cards to raise capital then max them out.. that strategy will absolutely hammer your fico and is very dangerous. for you to qualify for a true unsecured LOC from your local banks means your doing very very well... as those are not easy to get.

@Steve Stern - Where you able to find a LOC? If so who did you use? I have seen a few people mention a business line of credit that funds flip and fixes, which I am interested in. I'm curious to see others experiences before I jump into it.

If there is anyone out there that provided this LOC please reach out to me.

@Ryan Murphy normally unsecured LOC s with your local commercial bank is very much relationship based.. IE you have all your accounts with them you keep 300 to 500k in the bank liquid etc. You have lengthy track record usually 3 plus years of making money in the business your in... etc etc. they are NOT going to lend to folks that are just trying to enter the space... Unless again you have significant cash mitigate risk.. Or very high wage earner or monster stock portfolio and securities. I started in 1992 with this banker and 100k... at one time I was their largest borrower at 16 million... right now I bounce between 3 and 6 million. So if that was reported on my FICO my DTI would be slightly out of wac LOL. If you have that 800 fico and W 2 income that is nice... you can try over the counter LOC's with the national banks.. I got one for 50k on a sig with Chase.. at Zero cost and I think rate is under 5% I use it for EM deposits.

@Ryan Murphy not all banks report to fico.. Most SMall commercial banks DONOT. these banks do not do consumer credit.. IE they don't do car loans.. or credit cards or owner occ loans... Just like big commercial lenders that lend on Multi family don't report to fico. when I had my HML shop I enquired about reporting to fico ... I was told we could do that but the reporting is arduous and once you start you must report on every file. My commercial loans ( mainly construction loans and unsecured credit lines are NOT reported) And my commercial bank does not report any of their loans to fico

Hi Barbee! I know this forum post was two years ago, but do you still have the LOC connection in Chicago? Thanks in advance! Mike

Credit Line??Credit Line??

Back

Resources & Media

Resource Hub Bookstore Blog Guides Pro-Exclusives PRO Podcasts Pro Partnerships Property Management Toolkit

Events & Training

BPCON2025 Webinars Upcoming Events Free Courses

Strategies

How to Manage Your Rental Property How to Operate a Short-Term Rental How to Passively Invest in Real Estate How to House Hack How Does the BRRRR Method Work How to Flip a House How to Invest in Commercial Real Estate How to Invest in Real Estate How to Invest in Multifamily Real Estate How to Build Wealth

The BiggerPockets Conference

This is your chance to learn from the best, network with the best, and become one of the best in the game.

Discover BPCON2025

The Podcast Investors Trust

No fluff. Just deals, strategies, and lessons from the front lines of today's market.

Listen Now

Back

Pick Markets

Market Finder - NEW PRO Picking a Market Workshop PRO Picking a Market Worksheet Top 100 Cash Flow Markets Market Insights - Sunbelt Region

Market finder

Pinpoint the best real estate market for your specific goals with expert recommendations and real-time data on appreciation, affordability, rent-to-price ratio, and more.

Pick Markets

Pro membership

Get unlimited access to tools and resources that make it easier to find, analyze, and manage deals with confidence!

Upgrade to Pro

Back

Find Deals

BiggerDeals NEW Off-Market Deal finding PRO Real Estate Syndications Investor-Friendly Agents Find Foreclosures Community Listings (FSBO) Business Directory

NEW! Find Cash-Flowing Deals Fast

Search nationwide listings with built-in cash flow analysis.

Find Deals

Invelo - off market deals

Scale your portfolio with off-market deals.

Explore Now

Back

Calculators

Rental Property Calculator PRO Rehab Estimator PRO Rent Estimator PRO BRRRR PRO Fix & Flip PRO Short-Term Rental PRO Sell vs. Keep PRO Landlord Insurance Calculator by Steadily All Calculators

Rental property calculator

Is it a good deal? Run your numbers like a pro with this simple yet powerful calculator.

Run the Numbers

Rent estimator

Understand how much rental income you can expect based on recent reports and data for your specific property.

Run Report

Back

Manage Properties

Managing Properties 101 Find a Property Manager RentRedi Property Management Software PRO Baselane Automated Bookkeeping & Banking PRO Property Management Tools Ask a Management Question Finding Tenants Screening Tenants PRO Leases + Landlord Forms PRO Property Insurance Property Maintenance / Rehab PRO

Property management software

Manage tenants, tasks, and your entire portfolio with one simple tool.

Activate Now

Property manager finder

Find reliable property management partnerships that last.

Find a Property Manager

Back

Plans & Pricing

Pro Membership Business Membership

Try PRO for 7 days completly free

Avoid mistakes and make informed decisions with Pro.

Start Free Trial

Grow your business

Promote your business on BiggerPockets and make quality connections with the right investors.

Sign Up Now

Back

For You

Newest Unanswered My Discussions Followed Discussions Followed Categories Followed Locations Followed People

General Real Estate

General Real Estate Investing Starting Out Deal Analysis Buying & Selling Business & Marketing Landlording Property Management Reviews & Feedback

Real Estate Strategies

House Hacking BRRRR Short-Term Rentals Mid-Term Rentals Multi-Family Fix & Flip Other Strategies

Finance & Financing

Lending Creative Finance Personal Finance Taxes & Legal Issues

News & Announcements

Official Site Announcements Market Trends & Data Real Estate News & Current Events Pro Exclusive Area PRO

Events & Networking

Events & Meetups Classifieds

Back

All Books

Best Sellers Browse All New Books & Pre-Orders Bundle & Save Books for Beginners

Unlock hidden potential in every property and maximize returns

This is your creative breakthrough guide to escaping investment paralysis and unlocking hidden profit in any market.

Pre-order now

Build a Cash-Flowing Glamping Business with High Equity Upside

Whether you're starting from scratch or expanding existing hospitality operations, learn the practical frameworks needed to capitalize on the growing demand for upscale outdoor experiences.

Learn More

Credit Line??

Most Popular Reply