Secret Type of Financing Used By Successful Real Estate Investors

One of the critical elements of successful real estate investing is capital. Successful real estate investors, particularly BRRRR, Fix n Flip, Rehab Investors, REO Investors, Foreclosure Investors, and the like all have one thing among others in common – access to capital.

There are several steps in the real estate investment process including finding deals, negotiating purchase agreements, securing financing, project managing the rehabilitation, marketing, and then renting or selling the property.

This article is focused on a relatively little known and underutilized type of funding among real estate investors, but one that is becoming much more commonly used among successful BRRRR, Fix N Flip, and Rehab Investors.

What is that source of funding? Unsecured Business Lines of Credit. Having access to an experienced commercial finance advisor that specializes in providing unsecured business lines of credit for entrepreneurs, start-ups, and real estate investors can be a game changer in your success trajectory.

Here are just 3 advantages that real estate investors with access to unsecured business lines of credit have:

1. Time:

Once an investor has built their business credit and obtained unsecured business lines of credit, they are then in prime position as they have access to a readily deployable source of capital. These investors can spend their time chasing deals rather than chasing capital.

2. Speed:

How many times have you been in a situation or heard of a situation about a great real estate investment property that was available, but you or the person you heard the story from was not able to move quickly enough to secure the deal. The time it takes to search for funding can make the difference between closing on a great opportunity or missing a great opportunity. Having unsecured business lines of credit can allow real estate investors to use this capital for a quick down payment or earnest money to secure a deal before anyone else.

3. Capacity:

Capital again is one of the limiting factors that real estate investors face when trying to scale or ramp up their real estate investment portfolio. Often times their cash and liquid assets become locked up in properties and they are no longer able to put together the capital needed for down payments, earnest money, or to fix up properties that they have. Having access to unsecured business lines of credit can allow real estate investors to keep their cash and other liquid assets available for other needs and emergencies. Unsecured business lines of credit are recurring, so the balances can be paid off or paid down once the investment property are sold or rented.

While these are just three of the many advantages that unsecured business lines of credit can bring to real estate investors, there are many more advantages that we’ll share in the future. However, investors need to be very careful when seeking to establish and build their business credit. Multiple credit inquiries, funding declines from banks, and improper utilization can be counter-productive when seeking to build and grow business credit. This is why it is best to have the assistance of an experienced business credit advisor.

If you have any questions about building business credit and obtaining unsecured business lines of credit for your business and real estate investments, please contact us at: [email protected].