Any luck with business lines of credit???

[Brandon Elliott-Pandey]

Okay... I've been seeing a LOT of ads on my feed about opening a LLC and getting a business line of credit up to $250k!!!

I'm curious, has anyone done this and if so how'd it workout for your real estate investments?

TIA!

[Sanat Bhandari]

@Brandon Elliott-Pandey When social media influencers talk about business LOCs, generally they're referring to business credit cards with intro promos (0% APR for 12 months), personally-backed LOCs, and very rarely (in my experience) commercial LOCs

Where the interesting part lies in is that you can use projected business revenue to qualify for a lot of these LOCs so you could theoretically say that you'd be doing $15m in your first year of business and this would get you a large LOC (like the $250,000 you mentioned) as long as you personally back it. These LOCs also come at a high APR (>13% in most cases)

I have a LOC that I got with a local bank but it is a true commercial LOC secured by one of my properties. I used it to fund rehab on a couple projects so there's definitely value there