Does anyone have experience with Exposure Limit borrowing ?

[Aaron May]

I was approved for a large exposure limit line of credit. My understanding about this product is that it is intended for acquiring and renovating, and then I would refinance into a more conventional loan to finance long term as I do hold properties. The interest rate is about 8.5% but the cash is accessible within weeks and we would only have to bring 10% down for our skin in the game. I'm still learning about this type of lending but the appeal to me is that they don't consider personal income or tax returns, it does not need personal debt-to-income ratio qualifications, it's collateral based borrowing.. And, with only 10% needed down for the purchase of the property, and only 10% down needed for renovations, it seems that if we buy a property right, renovate it and add 10% in value, we could potentially refinance into a more conventional loan without having to bring additional cash to the table . We have an untapped line of credit already that we could use for the downstroke, we could potentially use this Exposure Limit LOC to buy and rehab, and could use my normal lender to refinance out, rinse, repeat.

Am I thinking about this correctly? Anyone have experience with this type of borrowing ? I realize it is intended for fix and flip type investors but I think I could make it work with my high end vacation rental model. Any insights would be appreciated.