Personal Lines of Credit FTW!

[Rich O'Neill]

Hello all! Quick story for you that hopefully inspires you to take a simple action to advance your investing. 

I was listening to the BP Podcast episode 134 with Terry Adams on my way to work the other day and they were talking about using unsecured lines of credit to start and continue investing in property. I thought, why not stop by the bank and see what kind of LOC they will give me (i was just there the day before to put my new wife on my accounts. Everyone in the bank loved that!).

I poked my head in my bankers office and asked if he could let me know what he thinks about it. He said sure have a seat. As we BS'ed a little, he was plugging away at the computer. Mid conversation he says "how does $25k sound?" to which I said "sure, you think I can get approved for that?" and he replied "Yup, it is already on your account." 

Before I even had a chance to consider the option, he had already done it for me. I was in and out in 10 minutes. Not that it really works this way, but I was just making $150,000 an hour for those 10 minutes! 

It was really helpful that I had just made some considerable deposits with the bank, they hold my mortgage on my primary, and I showed my face quite a bit in the branch. This is a large national bank and they were still able to do it that easily. I can't imagine how much more I would have gotten with a small local bank! 

Anyway, I now have some float money to help me buy properties at a relatively reasonable interest rate to bridge between acquisition and refinancing to longer term financing. If you have not already done so, I would highly recommend stopping in your bank where you do business and asking what they can do for you with a personal line of credit. 

Happy investing!