Is this my only shot?

[Josh Sterling]

Well, I'm really spinning my wheels here. In the past couple weeks I've called 30+ small banks/credit unions trying to line up financing for purchase/rehab. A 100k line of credit would be ideal.

Of those 30+ banks I got some interest from 2 commercial loan officers.

This week I met with both of them, and its not looking good. We have 7 rental properties, 5 of which are free & clear (all owned in an LLC). But they are very reluctant to lend on them.

Anyways, when I met with the last one today she spent the first 10 mins of the conversation telling me how this was virtually impossible, then she came accross a statement in our paperwork showing 200k in investment accounts and her whole tone changed.
I told her we are open to creative options to get the financing and she said they may be able to work with us on a cash secured line of credit.

Is anyone familiar with this type of financing?

What capital/loan ratio would be typical? (ex. 50k in CD at bank gets us 100k line?)

If they want to go with a 1:1 ratio (100k in CD gets us 100k line) is this even worth it? Doesnt make sense to me then, we might as well just use our own cash.

I am hoping to leverage the properties, but since they don't want to lend on them alone, has anyone had luck combining cash with free & clear property to get the collateral up?

Thanks
SR