Line of credit for 5x your available cash

[Brian Garrett]

I've heard about a LOC a few different times that gives you 5x your liquid cash and/or assets.

For example if someone had $100k in their savings account they would have $500k purchase power.

Does anyone know anything about this loan program or have more details on it?

I'm curious to know what the typical rate, term and amortization is on a LOC like this.

I tried searching for the posts that discussed this LOC but I had no like finding them.

If anyone has information or insight they can share it would be appreciated. Thanks!

[Dennis Wasilewski]

I’ve met with FoA and spoken with the Lilitz, Pa business manager a handful of times. Feel free to PM and I will share my term sheet with anyone or provide an intro to my contact. I’m still in touch with them but found private lenders that were cheaper & easier to work with at this time.

Here’s the stats -
-$500 to activate line (credited back if deal closes in 90 days) 

- 3.5 % origination fees

- Close to 10% rate

- Each project is reviewed/underwritten by FoA, which could take up to 30 days

- Up to 90% acquisition & rehab, I believe

- Standard draw rules on rehab side
- Line is up to 5x of assets, equity in home, 401k, etc
- Line has to reset to zero once per year