Lines of credit

General Real Estate Investing
1

I am looking to find money for closing costs, title work, appraisal, etc.- everything that is not included in the loan. Do you think I could get a line of credit for these costs? What is the difference between a personal and business line of credit and how to you get them? I don’t own my own home so I can’t get a home equity line of credit.

2

Also, what is the difference between secured and unsecured lines of credit? Mike

3

hey dynomac,
get all your credit questions answered at art of credit.com

hope that helps

4

Why not ask the seller to pay them? Or roll them in. There are 103% loans that willl allow you to roll in the 3% and apply it towards closing costs.

5

Hi Dynomac.

If you have a credit score over 680 and 3 years in a business with some cash in the bank we could do an unsecured Line of Credit with you.

The diference between and unsecured and secured line of credit is simply that and unsecured line of credit does not require you to have anything to put up as collateral. It is based upon your good credit and business experience.

The secured line of credit means that you have a line of credit in a certain amount, and you only pay interest on the portion that you take and as you repay it, it becomes available to you again. This type is secured by the equity in a property. ususally it is in the property you are buying itself, but it can also be cross collateralized on a home or other commercial property.

A business line of credit is kind of like a revolving credit card. They max out at 100k but you are issued an amount that they qualify you for and it is generally in the 50k range unless you have a lot of assets.

Hope this helps.

Jeff

6

Hey Jeff,

We just started our LLC, 2/1/06, so we don’t have 3 yrs experience. Would anyone consider creating a line for us? We’re 3 brothers, combined income of @ $230k, credit scores of 680, 730 and 820. We’re looking to do some investing under our business.

Any ideas?

thanks,
mike

7

I need to know how a property that needs be bought with the line of credit can be secured before the property is bought. That is more like getting a mortgage.

8

Hello Folks,

Keep in mind that many lenders will not allow unsecured funds to be used as down payment of closing cost money. So, whether you have one or not may not help if the lender will require you to source and season your funds.