Just trying to figure out the advantages and disadvantages of these forms of financing. I am leaning towards a business credit line assuming I will get a high enough credit line for it to be worth my while. I am just starting out so I will only be doing one house at a time until I get comfortable with everything. Do I need to have my business set up in an LLC before I can apply for the business credit line? I am looking to go through American Express Blue account. If anyone could help me out, I am kind of stuck at this stage, I have numerous houses I want to make offers on, just trying to figure out the best way for me to get the funds.
There are sooooo many variables here. If I hear you correctly, you will be flipping one property at a time. HML may fit your needs if you are doing quick flips. If you have good credit, NOO loan programs might be your best bet. As far as setting up an LLC goes, I would do that as soon as possible if you are truly serious about making REI a long term venture - it will allow you to get a line of credit. Different companies have different requirements though on a business line - find out if Amex has the 2 year rule.
Like Ryan, I want to focus on one property at a time to buy, fix and flip and am planning on using my heloc to do so. How would you rate this as an option to get into the business compared to other forms of financing. Paying the higher rates for HML bothers me. I’ve got excellent credit scores so where can I go to take advantage of that?
Using your heloc is a great idea. HML’s are good if you need quick funding, not neccessarily for bad credit only. There are programs that allow you to build spec/rehab homes. As long as your ltv stays 80% or below, you should not have a problem with financing.