How do people get LOC's for investing?

[William S.]

I see several posts on people who receive LOC's (not heloc) to finance their BRRRR properties.

How are they finding funds for this? Is it personal or business line of credit.

Can someone provide a basic example on how to do this?

[Ryan Henderson]

I've done this with my SFR's. I think you need several things:

1) Good credit score

2) A bank willing to lend with investment property as collateral

3) Equity in the investment property (my bank will do 80% LTV)

Terms right now are 4.25%, but the rate floats so you might want to watch that given rate increases going forward.