Real Estate Investor friendly Bank for line of credit?

[Amanda W.]

InvestHER from Philly...2 properties rehabbed and rented, house #3 just purchased via short sale using bank loan in rehab mode, 4th under contract, trying hard money for the first time...

My goal is to increasingly try to use OPM to fund purchase and rehab while build the credit of my business (separate LLC).

Opened up business account in 2015 with major national bank I won't name, under my LLC and manage all rental expenses and income with said account.

I used cash savings and a BRRRR to fund my first two rentals and rehab, and at the advice of a friend, went to this local bank now that I have some activity under my belt to request a line of credit against the business to fund my rehab budget and carrying costs like insurance, etc.

Went to bank two weeks ago, sat with manager for an hour, explained my path, and requested a $75K LOC against the business. He pushed me to consider using my primary residence (not interested, burned in 2008 crash) or my second active rental. Not interested there-want to save that to BRRRR another property. As such, applied for LOC against the business.

I have a W2 job with multiple 6 figure income, 20 years of continuous employment, great credit, and my rentals cash flow nicely with equity appreciation.  Thought I had a shot.

Well, needless to say, I get a cold letter from said bank, denying my application for due to "Unacceptable Business Purposes"...?! 

Gee...sorry for trying to borrow to sell crack cocaine...:)

No followup phone call, no "how we can help, sorry, you can't get $75K, but how about $25K"?

I'm thinking of taking my business from this bank due to total lack of customer service,  but before I do, I have two questions:

-What is the best way to achieve my goal? Is there an investor friendly bank I can build a better relationship with?

-If a LOC against the business is not achievable, what is the best vehicle to borrow carrying and rehab costs? I'd really like to preserve my equity in my homes to BRRRR in Philly!

Thanks

[Michael Glaspie]

Hey @Amanda W. I have a LOC with my bank against my business. In fact, I have several business that all have a LOC. With no financials they will approve $10k. With track record of success (existence) they will approve up the $50k without digging into financials. After that, they can approve much higher but underwriting is involved.

My point being there are banks out there that will do it. I highly recommend going to a local or regional bank/credit union becuase they will be less strict compared to a large national. We actually get most of our clients to this lender to get the LOC to continue to purchase BRRR or Flips.

I would suggest asking differnt banks. And from my understanding, the use of the LOC is irrelevant. The limit given on the LOC is based on the actual business performance.