Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
Usually it will be because they have several rental properties that generate enough income to do this and I believe most of the stories you hear on BP will be business lines of credit based on rental properties that the investor currently owns.
Rental Property Investor · New York City, NY · Member since 2017 · 493 posts · 386 votes
8y
I’ve used Personal Line of Credit. TD Banks offers up to 50k.
I believe Wells Fargo also has Personal line of Credit, I plan to look into it early next year.
At some point I plan to open a Business Line of Credit. I was reminded by my bank rep that my biz needs to be establish for minimally 2 years before applying. Not sure if all banks have this same requirement..
Springfield, TN · Member since 2017 · 17 posts · 8 votes
8y
I think Ryan Henderson, has it right. It will be hard to avoid paying the down payment on an investment. If you can come up with that, it would help. Also I'm sure many of these individuals are well established in this game. That's the largest hurdle in my opinion is getting to that level. It may take a couple of years but the determined will succeed .
I have both. The LOC is a personal LOC through a local Credit Union which I have numerous accounts with for over 30 years. The HELOC is with a local bank.
Spokane, WA · Member since 2017 · 23 posts · 27 votes
8y
I'm planning on applying for several lines of credit soon. I'm a physician, and there are several banks that offer personal, unsecured lines of credit specifically for physicians. I used one of these in residency and it worked out well for me, but is now paid off and closed. Also, in my research, I found that SoFi and Wells Fargo offer lines of credit to anyone with good credit score and income. So those may be options for you.
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
8y
William S. Kyle Varner
Business credit does not use personal credit instead it uses Business EIN. Here are notes from my most recent podcast interview.
1) Set up a business, website, physical address, land line
2) Get setup with reporting agency – write to reporting agency to see if you have an existing report
3) Get credit cards using EIN (Do not use Social Security Number)
4) Get Uline, Quill, Grainger, Seaton, Gimler, etc accounts
5) After 5 accounts get Home Depot, Lowes, Cash Credit Cards, Amazon, Sears
6) After 10 accounts get VIsa or Mastercard accounts