Hello All,
I would like for someone to walk me through asking for a line of credit, what happens and what you can use it for etc.
I can go to three banks here in town and get a loan for a property for loan plus fixup at 7.5%, nothing down, payments start in 90 days…BUT when I ask for a credit line, they don’t want to do that…Maybe I’m not asking the right questions. I just want X number of dollars that I can wheel and deal with and then pull each house off of the line after I rehab it for sale, hold or rent.
Any help appreciated.
Dee-Texas
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I was told the same thing by Nations Bank a while back. They just wanted to see the deed to a junk property I bought and had actually closed on and they would loan the rehab funds. I would get the seller to sign the deed and wait a few days to get funded. I took a copy to the bank and they funded the $25000 per house max loan per deal and I took the funds and closed on the purchase. It was kind of awkard but I did 5 loans with them with 0 down. You may just have to work with what they give you. Wish I had what you have now. I had it but lost it. I am forced to use expensive hard money loans with 5 to 10 points and 13 to 18 % interest. You may get your line if you use personal signature loans at higher rates or other collateral like stocks etc. We did have a $50000 line once in Mesquite Texas but that was almost twenty years ago and my dad knew the President of Mesquite savings and loan back then. He just said you got fifty grand when you need it. Hope my little story helps.
Dee,
I’m no expert, but here’s my opinion. I’d say take what you can get and begin to build the relationship and with more than one banker. Also, I’d try other banks as well. It’s not at all difficult to get small unsecured lines, but I think it will take a good relationship or pledging some assets to land a large unsecured line. I’m still working on that myself.
my view…
No doc/unsecured commercial lines are a great source.
Hey fortune,
I read another one of your posts. My question is do you need a company in order to get a unsecured commercial line of credit. What are the information needed to get something like that.
Thanks