credit line v. HML

Financing, Hard Money Lenders, Private Money
1

Hi

general question: HML v line of credit

LOC: I can get around 50-80K. secured cards then convert to cash. 10 points paid out of LOC. I can reuse as much as I want; pay only for what I use at 10-11%.

HML: 9-10% int only for 9 months. 5 point rolled into loan. 100% rehab and acquisition costs covered. no down payment (100% financing).

not sure if I can refi out if I buy cash with LOC. can do so with HML

which is best to do? Goal is to acquire then refi into a long term loan (not a cash out) , rinse and repeat . could sell as well but would prefer to build portfolio.

any thoughts from those out there doing this?
Thanks!

Eric

2

if you buy with your own cash you will have some limitations on when you can refinance, you will have to hold the property for (please correct me if I’m wrong) a year before you can finance based on appraised value