All Forum Posts by: Chris Teti

The other thing you can do is use unsecured lines of credit to help fund your deal. Either the downpayment, repairs, or both. This can be combined with other types of funding to cover your deal. 

I just went through this scenario myself. I've been working with a financial advisor that specializes in maximizing cash flow. They recommend going to a 30 year to lower your monthly payment. This acts as a safety net in case something happens with your situation, you are committing to a lesser monthly payment. If you have the extra cash, you can always pay extra toward the principle and pay it off early. Also, if you take the difference that you save on a monthly basis by going with a 30 year vs a 15 year mortgage, and invest it, you should be able to get a better return than the 3-4% you would save on the mortgage, and do it in a way that would be more liquid that stuck in your house in case you need it. 

Hi there! There is definitely alot to it, especially if you are trying to build the lines up higher. I find with these types of things, getting setup with business lines of credit, credit repair, etc, they are things you can do yourself but it can get time consuming and considerable trial and error. It's usually more productive and efficient to work with a person or company that does it all the time to know what pitfalls to navigate. 

Combine a HML with unsecured lines of credit, preferably in the business.

 Yep, that is possible, to 100% fund your deals.

Hey Ketan, I can't really help you with your question, but just out of curiosity, why do you want a line of credit on your investment properties instead of getting a business line of credit that is unsecured and not tied to an asset?

@Eric Hathway

Hi Eric, you could deposit the funds into your business checking account and ask your bank for a letter showing your balance. In my experience business accounts only require a day to post.

Interesting. I guess it would be similar to like a debt consolidation loan in that case, where they factor in the fact that the loan would be gone after financing.

Yeah, that can help too. The only downsides are that it negatively effects your DTI and you are paying on the loan if you are using the $$ or not (vs a line of credit).