Lines of Credit to fix-n-flip (2016)

[Duriel Taylor]

Hello BP Family,

Happy Sunday and I hope all is well. What would be your advice to someone that is interested in using lines of credit to start a fix-n-flip business? Here is my mindset on how the LOC process starts, how I would evaluate a property and how I would fund said property(project).

*I get approved for 150k, LOC

*find a property for sale at 80k

*rehab needed 10k

*resell value will be 210k

*it will take 2-3 months to rehab thus i will use the reminding funds from 90k (all in) minus 150k equals 60k.

*the flat fee for the LOC is 5k and there is a processing fee of 2k

*lets say I pull out all the funds available just in case I need to cover an expense I did not see coming and the monthly payment, total repayment is 157k

*then i sale the property for 210k minus the total amount invested 157k profits is 53k.

This is how i understand the LOC process and pay back. What would be your thoughts and your feedback? I look forward to hearing from you soon.

Regards,