I’m currently in the process of getting a line of credit to purchase this multifamily home. I was advised that this would be a good way to go being that I don’t have the 20% for traditional financing. But one company I looked into says that their fee is 20% of whatever my line of credit is approved for which will be 15K. Is this normal? Does anyone have any recommendations for line of credit companies. Or any alternative method for aquirig this home?
Hi,
From the sound of it you were thinking applying through a third party business, for a business / personal line of credit? These companies are not always successful however if they actually perform and you agreed to there terms, you will need to fulfill there demand for 20%! (Somewhat common demand from these freelance companies)
You need to research companies supplying lines of credit, I recommend unsecured and preferable “No Personal Guarantee” Corporate lines of credit! If you have a FICO score over 725 you can probable get a business line of credit for $15k to $20k as a new LLC or Corp. Wells Fargo makes small lines available as start up business lines to people with good credit.
Good luck,
GR
You can also get this same line of credit doubled if you build up corporate credit as well… the process is a bit different from personal credit tho…