New Member Info & Financing Questions

[Kevin Koy]

I am new Investor to Big Pockets, I have had some experience in the Investor world and want to continue to grow my business in the near future. I am from Houston, Texas , Self-employed Records Management business for over 16 Years. I  currently have (1) Rental Property Free & Clear w/ Rent of $1,350.00 a Month and (1) Owner Financing Property Free & Clear.

I completed my First Rehab/Flip in July of this year. In a Nut Shell  I bought from Hubzu for $48,000, Rehab Cost $32,000 and sold for $137,500. No holding cost used my own Funds.

This Brings me to Questions I have, using my money was nice w/ no cost but  I do not want to do that every time and I cannot increase my Business w/ just my own funds.

I do Have a Second Home in Texas I understand I can take out a Home Equity Line of Credit on this Home which is Free & Clear, valued at $290,000 dollars. The Banks want your Arm & Leg since I am Self-Employed and seem to only care what you make Monthly instead of Property Assets and Liquid Assets. Credit Score 795, so i don't anticipate a problem there. Has most Self-Employed people do, we don't show a big Profit Tax Return if the write offs are there. 

Obviously this is an Option for me, as well as hard money & private Money.

I was recently contacted by Hubzu because I was a previous investor w/ them about new financing they are rolling out under the name of Liberty Rental Finance. Has anyone heard or aware of this group, I believe they are a subsidiary of Ocwen.

They have one product that is Line of Credit for LLC business:

LOC-500K- $5mm ,FICO Score 650, LTV 70% or LTC 80% of purchase Price, Origination fee 1% of Line Amount, Closing Fees $1,850.00.

Liquid Assets Required of your Credit Line 20% Example: 500K at 20% 100k Liquid Assets.

Rate 9.95%

Line is open for 2 Year

Example if you get 500k LOC 1% of equal is $5,000 plus Closing fee $1,850.00.

Looking at $6,850.00 before you get the money.

Any Opinions on this would be appreciated, sorry for the lengthy @ mail and maybe some of these questions need to be posted in different Forum Page.

Kevin Koy