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Updated almost 7 years ago,
Applying for a RLOC to flip houses
Howdy all,
I am looking into applying for an RLOC (revolving line of credit) in order to flip houses in the DFW area. I am looking for some advice. I currently have two houses with some equity that I could use as collateral but I would rather leave them out of the equation. My question is this, if I create an LLC as the borrower for the RLOC and I have an individual with a high net worth be a guarantor on the RLOC and I show a strong business plan outlining the cash flow from the purchase and sale of properties will the bank feel comfortable lending to me not using the houses as collateral? Has anyone done something similar to this?
I am thinking a $200k RLOC, would look for houses under $100k needing about 20-30k of rehab with an arv of at least 50k more than purchase price. Those are just rough numbers, let me know what yall think!