What do you use Lines of Credit for?

What do you use Lines of Credit for?

Rental Property Investor · Overland Park, KS · Member since 2015 · 492 posts · 234 votes

What is the purpose of a secured/unsecured LOC? What do you use one for? Can you provide an example? Thanks!

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Rental Property Investor · MN · Member since 2017 · 864 posts · 555 votes
7y

@William S. I use LOC's to buy properties in cash and to later refinance into a traditional mortgage with

I went and made a list of 10 local banks and credit unions (not big name banks), sat and spoke with them and let them know my needs and what their LOC terms were against rentals.

After speaking with 10+ banks and credit unions locally, I found 2 credit unions that gave stellar terms and were more than willing to provide a large LOC against my rentals.

I am now using LOC's for capital for my Apartment Building Investing, to go in and make capital repairs to improve the property, and then refinance when I can. It makes both me and my investors a great return

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  • Scott JensenPro Member
    Financial Advisor · Blaine, MN · Member since 2014 · 477 posts · 387 votes
    7y

    I have a $40,000 line of credit on my residence that I use for rehab costs on BRRRR properties.

    Buy a property with cash

    Rehab with cash and/or line of credit

    Refinance to a traditional mortgage and pay back the line on credit

  • Rental Property Investor · Overland Park, KS · Member since 2015 · 492 posts · 234 votes
    7y

    Seeking info more on personal unsecured lines. I have no primary residence and I have yet to find a bank that does HELOCs in rentals.

  • Rental Property Investor · MN · Member since 2017 · 864 posts · 555 votes
    7y

    @William S. I use LOC's to buy properties in cash and to later refinance into a traditional mortgage with

    I went and made a list of 10 local banks and credit unions (not big name banks), sat and spoke with them and let them know my needs and what their LOC terms were against rentals.

    After speaking with 10+ banks and credit unions locally, I found 2 credit unions that gave stellar terms and were more than willing to provide a large LOC against my rentals.

    I am now using LOC's for capital for my Apartment Building Investing, to go in and make capital repairs to improve the property, and then refinance when I can. It makes both me and my investors a great return

  • Rental Property Investor · Olympia, WA · Member since 2010 · 127 posts · 76 votes
    7y

    We've used ours to "purchase" hard money to buy properties in need of rehab. Once we're done rehabbing, we refinance and pay that LOC back. Most banks will offer a personal line of credit in an amount determined by your income. Also you could get a home equity line of credit (HELOC) if you've got some equity there. Some banks will lend up to 90% LTV for HELOCs.

  • Investor · Las Vegas · Member since 2017 · 59 posts · 22 votes
    7y

    Leverage! PLOC's are great. We've been using this tool along with HELOC's for years. We use it in a different way than most people, but it's very beneficial. LOC's are simple interest, so you only get charged on what you use. PM me if you want to know more about using different strategies with these lines.

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