NJRealEstate
New Contributor
I am a relatively new REI, having worked on a few flips, and completing my first flip actually owning the property. My eventual goal is to own multi unit buildings and hold them for cash-flow. I graduated from college last year and am very tight on cash, however my bank offered me an unsecured line of credit on my business account in the amount of 100-250k depending on what I needed.
I am curiousness about using the Line to either:
1. outright purchase and rehab a home to flip or rent
2. use the money as a down payment for commercial property
Are there any restrictions or difficulty I would have refinancing this money laid out with the line if I had enough equity in the property (hopefully by adding value and re positioning/ upgrading). The line is at a variable interest rate a 2.5% over the prime rate
I did not tell the bank that I would be potentially using the money to purchase investment properties at this point.
Anything I need to be aware of? I have read a few REI books about creative financing however I am not confident that all I read is true, nor do I think I understand the details well enough to feel confident about taking on the debt without a clear exit strategy.
Do I need to tell the bank what I will be using the money for, and can they deny me from drawing on the line once it is underwritten?
What else am I not considering? I have read about others using HELOC to purchase properties, are there differences between this and unsecured business lines?
I am curiousness about using the Line to either:
1. outright purchase and rehab a home to flip or rent
2. use the money as a down payment for commercial property
Are there any restrictions or difficulty I would have refinancing this money laid out with the line if I had enough equity in the property (hopefully by adding value and re positioning/ upgrading). The line is at a variable interest rate a 2.5% over the prime rate
I did not tell the bank that I would be potentially using the money to purchase investment properties at this point.
Anything I need to be aware of? I have read a few REI books about creative financing however I am not confident that all I read is true, nor do I think I understand the details well enough to feel confident about taking on the debt without a clear exit strategy.
Do I need to tell the bank what I will be using the money for, and can they deny me from drawing on the line once it is underwritten?
What else am I not considering? I have read about others using HELOC to purchase properties, are there differences between this and unsecured business lines?
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
