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Nathan Frost
  • Rental Property Investor
  • Wichita Falls, TX
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320
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Business Line of Credit (Who is best)

Nathan Frost
  • Rental Property Investor
  • Wichita Falls, TX
Posted

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.

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Clayton Silva
Lender
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  • Lender
  • California
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Clayton Silva
Lender
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  • Lender
  • California
Replied

I can't do a business line of credit, but depending on your income/credit etc we can do HELOCs on investment properties if that is something you are interested in (can't do it in TX though so if all your properties are there I may not be able to assist)

  • Clayton Silva
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  • 209-329-8567
  • User Stats

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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    70
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    320
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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    Replied

    I have 2 in Oklahoma but keep being told they have to be in my name and not my LLC. Extremely frustrating.

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    User Stats

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    Clayton Silva
    Lender
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    • Lender
    • California
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    Clayton Silva
    Lender
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    • Lender
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    Replied

    Small hurdle, we typically see people QCD into their personal names, secure the HELOCs, and then switch back to LLC. We also have HELOANs and HELOCs that can fund with the LLC in place I believe, but they are not as fast/good/easy as the ones that fund in personal name.

  • Clayton Silva
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  • 209-329-8567
  • User Stats

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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    70
    Votes |
    320
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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    Replied
    Quote from @Clayton Silva:

    Small hurdle, we typically see people QCD into their personal names, secure the HELOCs, and then switch back to LLC. We also have HELOANs and HELOCs that can fund with the LLC in place I believe, but they are not as fast/good/easy as the ones that fund in personal name.

    Lets do it.  Looking for 30 to 60k.  I have 13 rentals.  Only 2 in Oklahoma though.

    User Stats

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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    70
    Votes |
    320
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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    Replied
    Quote from @Clayton Silva:

    Small hurdle, we typically see people QCD into their personal names, secure the HELOCs, and then switch back to LLC. We also have HELOANs and HELOCs that can fund with the LLC in place I believe, but they are not as fast/good/easy as the ones that fund in personal name.

    Love to do this.  Is the QCD pretty easy and affordable?

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    Clayton Silva
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    Clayton Silva
    Lender
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    • California
    Replied

    Definitely varies by state/county but typically you can prep the deed yourself (fill out a form) and then it's like $100 to record it with the county. 

    I'll let you know soon I have to QCD my primary this week into our trust haha but it's a pretty simple process so far. 

  • Clayton Silva
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  • User Stats

    320
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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    70
    Votes |
    320
    Posts
    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    Replied
    Quote from @Clayton Silva:

    Definitely varies by state/county but typically you can prep the deed yourself (fill out a form) and then it's like $100 to record it with the county. 

    I'll let you know soon I have to QCD my primary this week into our trust haha but it's a pretty simple process so far. 

    I have an LLC but why put Primary into a trust?

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    Clayton Silva
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    Clayton Silva
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    Replied

    Because I live in the stupid litigious state of California and I don't want my house locked in probate if something should happen to myself and my wife. It's to designate specific beneficiaries similar to a will so there is no confusion when we pass.

  • Clayton Silva
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  • User Stats

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    Francisco Hernandez
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    Francisco Hernandez
    Pro Member
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    • Baraboo, WI
    Replied
    Quote from @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.


     Fund and Grow is what most people use in my circle. It works. They negotiate everything for you depending on your credit profile. They tell you upfront what they can get before you accept their service. 

  • Francisco Hernandez
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  • 608-665-1541
  • User Stats

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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    70
    Votes |
    320
    Posts
    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    Replied
    Quote from @Francisco Hernandez:
    Quote from @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.


     Fund and Grow is what most people use in my circle. It works. They negotiate everything for you depending on your credit profile. They tell you upfront what they can get before you accept their service. 


     Link?

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    Kai Kopsch
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    • Charlotte, NC
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    Kai Kopsch
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    Replied

    I use American Express business blueprint; they like to work with REI and provide funds ASAP

  • Kai Kopsch
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    Francisco Hernandez
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    Francisco Hernandez
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    Replied
    Quote from @Nathan Frost:
    Quote from @Francisco Hernandez:
    Quote from @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.


     Fund and Grow is what most people use in my circle. It works. They negotiate everything for you depending on your credit profile. They tell you upfront what they can get before you accept their service. 


     Link?


     Just google "fund and grow". Ive had bad experiences posting links in other forums. 

  • Francisco Hernandez
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    User Stats

    320
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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    70
    Votes |
    320
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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    Replied
    Quote from @Francisco Hernandez:
    Quote from @Nathan Frost:
    Quote from @Francisco Hernandez:
    Quote from @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.


     Fund and Grow is what most people use in my circle. It works. They negotiate everything for you depending on your credit profile. They tell you upfront what they can get before you accept their service. 


     Link?


     Just google "fund and grow". Ive had bad experiences posting links in other forums. 


     I found them.  Is it a line of credit or credit cards?

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    Francisco Hernandez
    Pro Member
    • Investor
    • Baraboo, WI
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    Francisco Hernandez
    Pro Member
    • Investor
    • Baraboo, WI
    Replied
    Quote from @Nathan Frost:
    Quote from @Francisco Hernandez:
    Quote from @Nathan Frost:
    Quote from @Francisco Hernandez:
    Quote from @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.


     Fund and Grow is what most people use in my circle. It works. They negotiate everything for you depending on your credit profile. They tell you upfront what they can get before you accept their service. 


     Link?


     Just google "fund and grow". Ive had bad experiences posting links in other forums. 


     I found them.  Is it a line of credit or credit cards?


     They are a service. They find credit card companies that issue business credit for your specific profile. 

  • Francisco Hernandez
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  • 608-665-1541
  • User Stats

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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    70
    Votes |
    320
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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    Replied
    Quote from @Francisco Hernandez:
    Quote from @Nathan Frost:
    Quote from @Francisco Hernandez:
    Quote from @Nathan Frost:
    Quote from @Francisco Hernandez:
    Quote from @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.


     Fund and Grow is what most people use in my circle. It works. They negotiate everything for you depending on your credit profile. They tell you upfront what they can get before you accept their service. 


     Link?


     Just google "fund and grow". Ive had bad experiences posting links in other forums. 


     I found them.  Is it a line of credit or credit cards?


     They are a service. They find credit card companies that issue business credit for your specific profile. 


     So no line credit?

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    Francisco Hernandez
    Pro Member
    • Investor
    • Baraboo, WI
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    Francisco Hernandez
    Pro Member
    • Investor
    • Baraboo, WI
    Replied
    Quote from @Nathan Frost:
    Quote from @Francisco Hernandez:
    Quote from @Nathan Frost:
    Quote from @Francisco Hernandez:
    Quote from @Nathan Frost:
    Quote from @Francisco Hernandez:
    Quote from @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.


     Fund and Grow is what most people use in my circle. It works. They negotiate everything for you depending on your credit profile. They tell you upfront what they can get before you accept their service. 


     Link?


     Just google "fund and grow". Ive had bad experiences posting links in other forums. 


     I found them.  Is it a line of credit or credit cards?


     They are a service. They find credit card companies that issue business credit for your specific profile. 


     So no line credit?


    Business Credit cards will have a higher limit if your credit is in good shape and depending on how seasoned your LLC is. These services provide you with the opportunity to maybe land a 0% for 12-18 months card.


    If you specifically like the thought of a line of credit then you are going to have to do it the old fashioned way and apply at banks and see what they offer you. All credit cards are lines of credit but not all lines of credit have a card attached to them. It really just comes down to each bank and what they are willing to do for you. 

    Try banks that you already have a relationship with. More often than not, they are more accommodating to providing you with a more generous line of credit or terms. 

  • Francisco Hernandez
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    Kerry Baird
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    Kerry Baird
    Pro Member
    • Rental Property Investor
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    Replied

    @Nathan Frost, I recommend looking at the MyFico Community tab, and going through the pinned posts at the top of the Business forum.  You can see which business cards report to personal vs report to business, and can search through their forums for best BLOC available.  People post their data so you can see what other folks are getting, what NAISC code to use, and so forth.  I haven't found very much on this site. 

    I have found that I can apply for business credit cards, which enable me to do renovations or pay for utilities over a period of time, while I save up for down payments or what have you. I can also get points for my business with Chase or Amex. 

    Business lines of credit in my experience will often be high doc, so you need to have your articles of organization, the EIN number from the IRS, any other mbr/managers may have to be signatory to the debt (vs non-PG), and depending on the bank, they often want to see business tax returns.  Some will use bank statements to show a year of income.  They vary quite a bit.  LLCs over 2 years old will be easier than LLCs under 2 years old. 

    User Stats

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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    70
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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    Replied
    Quote from @Kerry Baird:

    @Nathan Frost, I recommend looking at the MyFico Community tab, and going through the pinned posts at the top of the Business forum.  You can see which business cards report to personal vs report to business, and can search through their forums for best BLOC available.  People post their data so you can see what other folks are getting, what NAISC code to use, and so forth.  I haven't found very much on this site. 

    I have found that I can apply for business credit cards, which enable me to do renovations or pay for utilities over a period of time, while I save up for down payments or what have you. I can also get points for my business with Chase or Amex. 

    Business lines of credit in my experience will often be high doc, so you need to have your articles of organization, the EIN number from the IRS, any other mbr/managers may have to be signatory to the debt (vs non-PG), and depending on the bank, they often want to see business tax returns.  Some will use bank statements to show a year of income.  They vary quite a bit.  LLCs over 2 years old will be easier than LLCs under 2 years old. 


     MyFico Community Tab?  Where is that?

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    Kerry Baird
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    Kerry Baird
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    Replied

    @Nathan Frost, go to myfico dot com and look for the tab that says "Community" rather than the aspects that provide your FICO score.  Under the community side of things are a bunch of forums, so scroll down to the Business forum.  Look at the top for pinned posts, one of which has business credit cards that report to your personal vs ones that report to your business score.

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    Jamie O'Connell
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    Jamie O'Connell
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    Ive used Key Bank. Pretty fast 30k approval with no questions really. I will say Key Bank is a bit annoying to work with (I was warned by guy who recommended and can attest personally that it's true) but honestly not a bad option. Im only 6 MF units and 1 year into it so my options are limited. They are based up north on east coast but prob work around USA. 

  • Jamie O'Connell
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    Cliff T.
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    Cliff T.
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    Replied
    Quote from @Kai Kopsch:

    I use American Express business blueprint; they like to work with REI and provide funds ASAP


     What type of rate and terms do you have with Amex business blueprint?

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    Kai Kopsch
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    Kai Kopsch
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    Replied
    Quote from @Cliff T.:
    Quote from @Kai Kopsch:

    I use American Express business blueprint; they like to work with REI and provide funds ASAP


     What type of rate and terms do you have with Amex business blueprint?


    Total monthly fees incurred over the loan term range from 3-9% for 6-month loans, 6-18% for 12-month loans
  • Kai Kopsch
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    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. 

  • Brian Hansen
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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
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    Nathan Frost
    • Rental Property Investor
    • Wichita Falls, TX
    Replied
    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.

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    Brian Hansen
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    Brian Hansen
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    Replied
    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. 
  • Brian Hansen