Guidance Line of Credit- Who Has Used to Fund Rehab?

[Jonathan C.]

I did a search and wasn't able to find much on this.

Wanted to see if anyone has used/tried to use/thought of using a commercial guidance line of credit to fund their flipping.

I'm talking to a community bank here about establishing one-- it isn't perfect as it will go to 70% of the purchase price or 'as-is' value whichever is LESS, so for most properties that would probably fund 40-50% of the overall project cost.

The good news is the interest rate would be fairly low and it seems as though it's something that can be used on short notice.

So was interested to get any experiences with this.

Thanks