Why/How to use unsecured personal lines of credit

[William S.]

I have been searching for banks/credit unions that offer this product. 

How have you utilized this in your real estate business?

Why use a LOC in real estate?

(I am wanting to grow and am looking for additional funding sources)

[Andrew Postell]

@William S. using a LOC can be useful in real estate depending on your objectives. For example, if you are flipping homes, you can use a LOC to buy or to do the repairs, pay the loan back with the proceeds, and do it all over again. However, if you are using it to buy and hold, then using an unsecured loan could cause an issue if you needed permanent financing with a conventional loan. But if you did buy with hard money, used your LOC for the down payment, then refinanced into a conventional loan that would be ok. Using a portfolio loan might not matter but some could have an issue with it. The point here is to really be prequalified first and talk these items with your loan officer so you know how to plan ahead. Thanks!