Leveraging Unsecured Lines of Credit

[Chris Teti]

Most people know a hard money lender or a commercial bank, but very few know how to acquire Unsecured Lines of Credit to complement those lending sources to 100% finance their deals. And even fewer people know how to properly use the capital once they have it

In my opinion, leveraging Unsecured Lines of Credit and combining that with a hard money lender or commercial bank for flips and BRRRR rentals is the best way to go. $0 out of your own pocket, 100% using bank money, and easy access to the funds when you need them.

What do you think?

[Bob Green]

Chris,

Sure unsecured funds can be thrown in the mix if you are already approved with HML, but when it comes to qualifying for a loan, the unsecured funds will be required to be seasoned for 30+ days and in most cases 60+ days. Most lenders will not count unsecured funds towards liquidity, therefore the funds need to be seasoned in the bank so large deposit will not show up on bank statement. If it does, lender will ask for a paper trail and source from where the funds originated. If found to be from unsecured funds will not be counted.