Personal LOC, HELOC or Refi

[Ardranae Byer]

Hi BP,

I can use some insight. I having been investing in multi-units and SFR properties for about 4 years now and I been wholesaling for the past two years. I been using the traditional way to acquire the properties that i own (Only three). For the past year I have been reading/researching about strategies and funding options. I would like to use OPM for my next purchase, rehab and refinance. I have money saved up but not enough for the purchase and rehab. I have a 760 credit score and a great job. So I am wondering which option would be best to consider for my next purchase. Should I do:

*HELOC

*Personal Line of Credit

*Business Credit

I am stuck because each of these would hit my credit very hard and I am nervous that it will drop it too much to be in position to refinance. I have been approved for $70k (use for rehab and materials) of business credit but I have not accepted it yet. I have also been approved for slightly more in a personal line of credit that I have not accepted as well. Currently, I have not applied for the HELOC or Refinance for my rental properties. If you were in my shoes, what would you do? If there are other options out there that I have missed, please share. I am open to any

[James Perdomo]

@Ardranae Byer

Do you own your properties under your own name? If not, you could open up a commercial line of credit which can get you 70-80 LTV available. You wont be charged interest on whats not being used. I always rather do this than REFI and kill my cash flow. TD bank does this as well as some local lenders. Try small credit unions in the area your investing in. Hope this helps!