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    2 Replies Latest reply on Dec 16, 2008 10:12 PM by NoBullFunding

    Best way to obtain line of credit for real estate investing

    Mr_smarts Newbie
      I have an LLC that I just opened for real estate investing. I purchased my first property under the LLC a few months ago, I own the property with no mortgage and have a tenant renting it already. I also own 2 other properties, 1 with mortgage and the other free and clear. Both under my name, not the LLC. I've bought and sold several properties before.

      Could I use the property under the LLC to secure some type of line of credit? The property is worth 100k. I would also personally guarantee it, I have great credit and a good income.

      I buy properties half-off, so I can quickly pay off the loan with the rent payments and extra payments. Which is why I'm not looking to mortgage them.

      Would I be able to secure 80% of the property as a line of credit. Or half? I've called the bank and am waiting to hear back from them. Just looking for more info. Thanks!

      Where would the best place be to look for this type of credit line?

      BTW: Its in Texas, property is cheap here. :)
        • Re: Best way to obtain line of credit for real estate investing
          LUCKIEST Guide
          Best way to obtain line of credit for real estate investing, Welcome

          Go to Members page and tell us more. Every business should have an Accountant, A Lawyer and maybe an Insurance Agent.

          Good luck, LUCKIEST
          • Re: Best way to obtain line of credit for real estate investing
            NoBullFunding Scout
            Given the state of the real estate market, banks may not be willing to go up to an 80% LTV on investment properties. If you own a bunch that are unencumbered, a bank might be willing to do something, especially if you have good credit and income and lots of equity. Your best bet would be to speak to a local community bank...they tend to be more willing to do something like you are proposing since it can be a well secured loan for them. Large banks like B of A are less likely do it because it doesn't fit into their normal "cookei cutter" loan parameters. The amount you'll be able to borrow will be limited by the equity you have, and also what level of debt the existing rents can cover. In other words, as long as your properties are cash flowing, you're chances of being approved will be much higher.