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Updated almost 9 years ago,

User Stats

63
Posts
9
Votes
David Green
  • Investor
  • La Grange, IL
9
Votes |
63
Posts

Funding deals under 40K

David Green
  • Investor
  • La Grange, IL
Posted

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?

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