All Forum Posts by: Chris Teti

Hi Mary,

Regarding the $800K Credit Lines, when you see that, they are not all truely a $800K credit line. They are more like a pre-approval but they usually have to go back to the lender to approve each deal. If the actually have a single $800K business credit lines that they can use just by writing a check, it means that they have an establish seasoned business with significant revenue backed up by tax returns. In the latter's case, yes you can just write a check out for whatever they want.

Using your personal credit card is not ideal as it will negatively effect your credit score and your DTI.

I use unsecured lines of credit to combine with HML/Mortgage.

Credit line. You can get them without it being secured to an asset so you can use it for other projects too. 

I ask because so many investors work in such a wide variety of areas and price points of the country. So someone looking for $30K has some different options than someone looking for $500K for their project.

I have alot of experience with unsecured lines of credit. I tend to think that they are a fantastic tool and actually a preferred method of funding or partially funding deals. So I was curious as to how much you needed to see if that was a realistic option or not. Either to fund the entire purchase or to use for part of your funding. Problem with your situation is that those funds would have to be seasoned and you will likely miss this opportunity, but you could potentially have them in place and seasoned for the next opportunity.

Only way I know how to do it is to use unsecured lines of credit with a HML to acquire and fix it up, then refinance out long term with a traditional mortgage/commercial lender.

How much is the purchase price?

Hi Jonah, you can get setup with unsecured lines of credit for your gap funding. Normally you would want to be setup with them before you find the deal so that you can pull the trigger quickly, but it's possible for this deal if your credit looks right and you have about 30-45 days before you need the $$. The problem is that a normal residential mortgage company wants the down payment money to be seasoned for a few months.

You could also consider a short term plan of working with a HML that will only require you to put a smaller % down or allow you to use the lines of credit to fund the deal, knowing that once you make the necessary repairs, you can refinance back out to a longer term mortgage. But you have to make sure the numbers still work with the extra financing costs.

Good luck man!

Hi Andrew, I would recommend unsecured lines of credit. If you set them up the right way they can give you the capital you need and protect your personal credit at the same time. 

Yeah, the Traditional LOCs are tightening up, pretty much all of them require tax returns now. Most hard money is tightening up too, but there are still HML's that are flexible. Still having great success with credit cards though.