All Forum Posts by: Nathan Frost

keep in mind most business lines of credit from a bank TRUE unsecured LOC's are on one year revolvers and they can and are frequently called.. another tid bit is many times they have a 30 day resting period per year.. meaning you have to pay it off and rest it for 30 consecutive days.

these are true unsecured LOC's from Banks..

also careful with the fake business loan lenders that say your all approved just send me a little money up front.. in almost all instances they are simply scammers crooks and thieves.

So what do you recommend? Refinance it or pay it off in a year. One year could be tough to pay off a $10k LOC. What is an example of how to effectively use the LOC? Wish I could use a HELOC but a lot of banks around here are not offering them.

0 Votes

Lubbock, Texas

Quote from @Jay Hurst:

@Nathan Frost Do you have substantial equity in your current investment properties? if so, you can potentially use that equity as collateral to buy new properties. We offer that product for example.

Yes, I am currently trying to add one property using that method.

0 Votes

Lubbock, Texas

Hi all, how can one use a line of credit to add rental properties to their portfolio? Can someone give me an example? Bank said I could use it as the down payment and then get another bank to fund the loan. I am trying to add more rental properties and wanted to see how to use this. A lot of banks here are not doing HELOCs. So I am looking at line of credit or possible cash out refinance but really don't want to cash out refinance on my primary.

1 Vote

Lubbock, Texas

Quote from @Mike D'Arrigo:

Quote from @Nathan Frost:

Quote from @Mike D'Arrigo:

@Nathan Frost depending on where your existing rental properties are, you might be surprised to find how much equity there is. Many of our clients have been able to pull a lot of equity out of properties that they just bought 2-3 years ago. If you haven't already done so, I would get some comps to determine the values. In any case, HELOC's are a great way to freeing up capital for downpayment. Otherwise, all that equity is sitting in the properties not working for you.

I asked my bank and they said they don't do HELOCs is there a way to get one at other banks? My thought is to use equity from the rentals as a down payment on my next rental investment property or a line of credit. What do you suggest in order to expand my portfolio? I am trying to see which creative financing avenue I can use to add 1-2 more rental properties.

Some banks don't do them but there are plenty of others that do.

So shop around? One bank said a line of credit. How can one use a line of credit on good deals? Trying to see how to add 1-2 properties with a line of credit.

0 Votes

Wichita Falls, Texas

Quote from @Kaci Hunter:

Two things

Check the comps in the area of all your rentals. The areas may have increased in home values creating some more equity.

What's the current interest rate on all your houses? Would giving up that interest rate for a new (most likely higher) interest rate be recovered somehow in the rents?

Rates right now are 5.5-7 for commercial loan. I am trying to see what other avenues I can pursue for funding since my bank said they do not do HELOCs.

0 Votes

Wichita Falls, Texas

Quote from @Mike D'Arrigo:

0 Votes

Wichita Falls, Texas

Hi, I have lived in my primary home for 8 years and have a good amount of equity in it. How could I go about using a HELOC to buy 1-2 rental properties? Would it be the down payment or buy it full price with one big HELOC?

Also, which is smarter using a HELOC or business line of credit to buy my next 2 remtals? I have heard the HELOC is a great way to go but I want to make sure if I do I can refinance it into a 15 year note.

My question is which route is the best in using the equity in my home to add 2 more turnkey properties?

0 Votes

Wichita Falls, Texas

Hi, I am trying to see what has worked for other investors and which strategy seems smart. I have lived in my primary home for 10 years and could cash out 40k to buy 2 more rental properties locally. Or should I look at my portfolio of 9 properties and see if I could cash out on those to buy 1 more property? Most of my single family home rental properties were purchased in 2020 and 2021 so I don't think there is a lot of equity to pull there. Wish I could use of my rental properties/equity as a down payment for my next rental purchase. Any tips or advice is warranted.

1 Vote

Wichita Falls, Texas

Hi, does anyone know how to search on the county records website for homes that would possibly be good to sell? I am reaching out to the Lis Pendens but there are only a few in the county here. Are there any other search options that would be good to search that are key indicators of an owner likely to sell their property?

0 Votes

Wichita Falls, Texas

How can I get the seller to replace the roof with a new one? I think they will fix the plumbing leak and other cosmetic items. But was worked for anyone when buying an investment single family property to get the seller to put a new roof on. I already had an inspection done. What leverage can I use? I'd be fine if they just put a new roof on and nothing else.

0 Votes

Wichita Falls, Texas

All Forum Posts by: Nathan Frost

Nathan Frost has started 106 posts and replied 336 times.

Post: Business Line of Credit

Post: Business Line of Credit

Post: Business Line of Credit

Post: Cash Out Refinance Investing

Post: Cash Out Refinance Investing

Post: Cash Out Refinance Investing

Post: HELOC Real Estate Investing

Post: Cash Out Refinance Investing

Post: Pre-Foreclosure Search Lis Pendens

Post: Asking for repairs buying Investment Home