Revolving Line of Credit

[Sammie Xiao]

Merry Christmas BP family.

Anybody use revolving line of credit for flips?

I got an offer for a line of credit 5 million. Term is 18 month, interests rate one month libor plus 7.25%.

75% LTV.

Legal/ documentation fee is 5000.

This is good for single family or commercial.

I am wondering if any of you have used this kind of credit line before and if yes, what’s the pros and cons?

Thank you!

Sammie

[Jeff S.]

That sounds phony. You don’t want documentation fees. Credit lines don’t have fees as far as I know. And 5M on a new line doubtful.