Which is better? Private lender or Line of Credit?

[Tony Marcelle]

It would be good to have the cash I need at my disposal to use at moments notice. My investing partner keeps bringing up how I should get a business line of credit to use as cash to buy homes. My thing is, which is better to have? Private lender or line of credit? If line of credit, would it be best to get secured or unsecured line of credit? My credit scores are 742 and 733 if that is good enough.

[Eric Black]

I would recommend the line of credit as well given your credit score. The holding costs are typically much less on a line of credit than on private money. We use this strategy, although on a HELOC, not a business line of credit. We have been able to purchase multiple properties this way. We purchase a property, use the income to pay off the HELOC then start again. It's a great snowball strategy!