Arlington, TX · Member since 2013 · 18 posts · 5 votes
My family has 28 SFR that are debt free. I'm wanting to bundle 6, 7, 8.....in order to secure a line of credit. I spoke with Bank of America and have a call to a local Credit Union, but wanted to ask on here if anybody new what was available. I really didnt think it would be that difficult to get a $500,000 line of credit secured by 8-10 investment properties, but either I don't know the language to use or I'm not speaking to the right people. Any guidance would be appreciated.
Vendor · Brandon, FL · Member since 2016 · 71 posts · 20 votes
9y
Well, a couple of things. BOA is great for certain products but I think you would be a much better fit for a local community bank. They would probably roll out the red carpet for you. Now, even though you have assets they will still look at your overall numbers, income/outgo/credit/blah/blah/blah.
One of my clients has been attempting this with a big box bank since December. He said he would continue that battle until 3/31 then he will let me help him, hahaha. I don't lend, I just connect people where they might be a good fit. Get a good banker, interview him or her first before you share what you are trying to accomplish. All bankers are not created equal and some are just product pushers. That's what I would do.
Arlington, TX · Member since 2013 · 18 posts · 5 votes
9y
Thanks guys....I'm moving toward finding someone local that actually wants my business.
Mainly I wanted to know what the appropriate language is.....is it a real estate acquisition LOC or simply a secured LOC, and bundled HELOC. I was warned at BofA not to mention if I wanted to use the funds for acquisition. LOL
Investor · Suwanee, GA · Member since 2010 · 104 posts · 22 votes
9y
Hi Ben been dealing with the same thing. FYI they are now asking for now is a 30 day "clean up period" per year where you have to keep the balance at zero for 30 days out of 365 days. Not sure why that is but two different local banks have the same terms. Might be par for the course here in Georgia.
Several brokers/lenders are marketing longer term blanket loans. Problem with those is you pay interest on the money even when you are not using it.
Investor · Magnolia, TX · Member since 2014 · 17 posts · 4 votes
9y
Ben
Have you found the Lender to do as you intended? IF not, I will take care of this for you, through my Lending Agency here in Texas. Please advise. Thanks.
Arlington, TX · Member since 2013 · 18 posts · 5 votes
9y
Found a local Bank....Mansfield Community Bank, willing to give a Line of Credit at 70% LTV and charging Prime +2. 1% origination plus appraisals and Title policy. $500k LOC secured by 5 properties.
I had originally contacted a broker that wanted to charge me $28k to originate the LOC....Mansfield did it for $11k