Updated almost 10 years ago on . Most recent reply
Funding deals under 40K
I am wondering what options investors are using to fund cheaper deals (<40K).
I can make cash offers, but I need a way to pull my money back out so I can repeat the process. I know I can get a LOC on them which I like due to the low fees. The problem is, I am limited on how many LOC I can get so this strategy will not work very long.
Some of the properties are already tenanted if that makes any difference (season requirements).
I think I read somewhere that some folks are bundling several of these smaller deals together to get a business LOC. Then they just add new properties to the LOC as they acquire them to increase the limit.
Long story short, I am trying to keep access to my capital while not using up my LOC and conventional loans (limited to 4) on cheap properties. Also wondering, if a bank keeps a loan in-house, does it count towards my 10 loan limit?
Any advice would be greatly appreciated?