Business Line of Credit (Who is best)

[Nathan Frost]

Hi, I have about 13 rental properties likely 14 by end of the summer.  Where is the best place to apply for business line of credit say 30-70k.  I don't need it immediately but likely in case of emergencies or vacancies.  Any advice is warranted on where to get this.

[Nathan Frost]

Quote from @Brian Hansen:

Quote from @Nathan Frost:

Quote from @Brian Hansen:

The issue with using 0% credit cards is that you need to liquidate the cards in order to get the cash (unless you can charge a card for what you're looking to use the money for). The liquidation is a bit of a process and will cost you money as a service, too. 

I'm also thinking about a line of credit for that reason. Money out, money in, no liquidation needed to get cash.

I recognize that the loans are not going to be 0% and some banks will not want to create lines if they know it's for real estate investment due to the risk factor. 

Trying to find a bank who is OK with a line for real estate and has a low-ish rate. 

@Nathan Frost - I'll keep you posted on what I find, but it seems that, if the numbers work, you can do cash out refi on some of your properties to get cash that you can use as your own bank. 

Appreciate it. Yeah, I have business credit cards. Its great to have access to the cards/cash but to me that is only if doing a flip or BRRR. If you end up with 40k cash on the all cards you need to pay that off in 12 months for 0% interest or else you will be paying a high amount. Don't think that works for buy n hold investors.

That's correct. That's the position I'm in right now. My 0% cards run out in November. I'll be moving money from my HELOC to pay those down to 0%. The HELOC has a high interest rate as well, so I'm actually doing a cash out refi on a property to get cash out of the equity. This particular property already is at 6.9%, so I'm comfortable swapping rates since it was not at, say, 4.5%. It won't add all that much to the monthly payment, I can afford the closing costs, and there is enough equity to get a 90% HELOC and pay off the credit cards. 

Getting a HELOC on the investment properties? Texas doesn't allow that so I am selling a few here and investing in other states with lower taxes and allow HELOCs on investment properties.

I am doing a balance transfer from AMEX to Chase Business but once I sell some properties I can pay it off. Wish I could find a way to pay the rest off without having to use proceeds from the sale of some of my investment properties. Don't really want to do a HELOC on my current primary home but could. How much could I get? I owe 109k on my primary and it is worth about 220k. Can I get up to 80% - what I owe?

[Brian Hansen]

Quote from @Nathan Frost:

Quote from @Brian Hansen:

Quote from @Nathan Frost:

Quote from @Brian Hansen:

The issue with using 0% credit cards is that you need to liquidate the cards in order to get the cash (unless you can charge a card for what you're looking to use the money for). The liquidation is a bit of a process and will cost you money as a service, too. 

I'm also thinking about a line of credit for that reason. Money out, money in, no liquidation needed to get cash.

I recognize that the loans are not going to be 0% and some banks will not want to create lines if they know it's for real estate investment due to the risk factor. 

Trying to find a bank who is OK with a line for real estate and has a low-ish rate. 

@Nathan Frost - I'll keep you posted on what I find, but it seems that, if the numbers work, you can do cash out refi on some of your properties to get cash that you can use as your own bank. 

Appreciate it. Yeah, I have business credit cards. Its great to have access to the cards/cash but to me that is only if doing a flip or BRRR. If you end up with 40k cash on the all cards you need to pay that off in 12 months for 0% interest or else you will be paying a high amount. Don't think that works for buy n hold investors.

That's correct. That's the position I'm in right now. My 0% cards run out in November. I'll be moving money from my HELOC to pay those down to 0%. The HELOC has a high interest rate as well, so I'm actually doing a cash out refi on a property to get cash out of the equity. This particular property already is at 6.9%, so I'm comfortable swapping rates since it was not at, say, 4.5%. It won't add all that much to the monthly payment, I can afford the closing costs, and there is enough equity to get a 90% HELOC and pay off the credit cards. 

Getting a HELOC on the investment properties? Texas doesn't allow that so I am selling a few here and investing in other states with lower taxes and allow HELOCs on investment properties.

I am doing a balance transfer from AMEX to Chase Business but once I sell some properties I can pay it off. Wish I could find a way to pay the rest off without having to use proceeds from the sale of some of my investment properties. Don't really want to do a HELOC on my current primary home but could. How much could I get? I owe 109k on my primary and it is worth about 220k. Can I get up to 80% - what I owe?

I believe so, yes. You can find lenders who will give up to 90% loan to value. 

[Nathan Frost]

Quote from @Brian Hansen:

Quote from @Nathan Frost:

Quote from @Brian Hansen:

Quote from @Nathan Frost:

Quote from @Brian Hansen:

The issue with using 0% credit cards is that you need to liquidate the cards in order to get the cash (unless you can charge a card for what you're looking to use the money for). The liquidation is a bit of a process and will cost you money as a service, too. 

I'm also thinking about a line of credit for that reason. Money out, money in, no liquidation needed to get cash.

I recognize that the loans are not going to be 0% and some banks will not want to create lines if they know it's for real estate investment due to the risk factor. 

Trying to find a bank who is OK with a line for real estate and has a low-ish rate. 

@Nathan Frost - I'll keep you posted on what I find, but it seems that, if the numbers work, you can do cash out refi on some of your properties to get cash that you can use as your own bank. 

Appreciate it. Yeah, I have business credit cards. Its great to have access to the cards/cash but to me that is only if doing a flip or BRRR. If you end up with 40k cash on the all cards you need to pay that off in 12 months for 0% interest or else you will be paying a high amount. Don't think that works for buy n hold investors.

That's correct. That's the position I'm in right now. My 0% cards run out in November. I'll be moving money from my HELOC to pay those down to 0%. The HELOC has a high interest rate as well, so I'm actually doing a cash out refi on a property to get cash out of the equity. This particular property already is at 6.9%, so I'm comfortable swapping rates since it was not at, say, 4.5%. It won't add all that much to the monthly payment, I can afford the closing costs, and there is enough equity to get a 90% HELOC and pay off the credit cards. 

Getting a HELOC on the investment properties? Texas doesn't allow that so I am selling a few here and investing in other states with lower taxes and allow HELOCs on investment properties.

I am doing a balance transfer from AMEX to Chase Business but once I sell some properties I can pay it off. Wish I could find a way to pay the rest off without having to use proceeds from the sale of some of my investment properties. Don't really want to do a HELOC on my current primary home but could. How much could I get? I owe 109k on my primary and it is worth about 220k. Can I get up to 80% - what I owe?

I believe so, yes. You can find lenders who will give up to 90% loan to value. 

90% be great in Texas. AIO might be better even if at 8%. All in one HELOC is pretty impressive.