Real estate line of credit
Can you help me with a question, hoping you have some experience or knowledgeable about it. I got offer a real estate line of credit that I can use to purchase more real estate. What are your thoughts on LOC? Pros/cons. Below are the guidelines.
Line of Credit Qualifications - rates start at 7.99%
To qualify for our line credit product = 7x your liquid assets (cash, stocks, 401k, accounts receivables, inventory, etc.):
- 640 minimum credit score- At least 2 real estate investment transactions completed in the last 36 months (rentals, flips, construction)- Line of credit must be issued under a business entity (LLC, trust, corp, etc.)- Cannot be delinquent on any current mortgage obligations- Cannot be recently emerging from or entering bankruptcy- Must be a U.S. Citizen.
As discussed, I have options to refinance your multifamily short term bridge loan into a stand alone 30 year conventional (rates start at 4.5%) or a government sponsored loan - Fannie Mae, Freddie Mac (rates start at 3%) after 1 year.
Your credit line could then be reused for your next purchase..