Business line of credit (@ 5%)

[Bryan Price]

Hi All,

I've seen some posts about using a HELOC as start-up capital. Has anyone used an unsecured line of credit to make their first investment? I have a $200k LOC at 5% which is renewable each year. I am subject to interest rate changes and call risk. I was wondering if a strategy has been mentioned like this before on the forums. Could I borrow from my LOC, make an all-cash offer (and hopefully get a better price!), and then take out a HELOC on the property to pay off my LOC? Any advantage to this strategy?

Bryan