All Forum Posts by: Raymond Hunce

@Eric H. The advisers facilitating the lines of credit (LOCs) are MB Capital Solutions, http://www.mbcapitalsolutions.com/, based in NJ (contacted them via a referral). All they asked of me was to open up a Credit Karma account so they can look at my personal credit score. Essentially, the LOCs are based on this. From there, they can reach out to financiers (whoever they may be?) and get me LOCs that add up to a certain total amount (for me, will likely be a couple/few tens of thousands of dollars; for my partner, probably around $50k or $60k). These LOCs will be unsecured and if it means anything, we have no business/investment history, as we're just starting; perhaps lower fee LOCs can be attained from a proven business with a history, or perhaps these fees are high independent of that?

Tremendous thanks for all the input @Eric H. @Ayodeji Kuponiyi @Darren Eady @al 

@Al Wilson!

Hey Darren,

That's a one time 8% up-front fee, period (i.e. no additional costs, ever), and the loan rates and terms will be established by each lender (which are not established at this point). It's all still being worked out so I'll get more detail as I go. Initially, the one-time 8% up-front fee "sounded" high but since I had no reference to base it off of, I was hoping someone like you could advise, and you did! And based on what you said, it sounds like we're getting a reasonably fair deal.

Al, sounded high to me too! But again, needed some reference.

Thanks a lot guys. This BP community truly is invaluable and I look forward to helping others once my partner and I have a few investments under my belt.

Best!

Hello BP Community,

My partner and I just set up our LLC and business bank account to invest in real estate in Maryland (Baltimore and Harford counties). We have no investments yet nor have we conducted any other operations. Now, we are currently establishing business lines of credit, unsecured, which are based on our personal credit (we're each doing this through separate LLCs). The financial adviser that is establishing our lines of credit is charging 8% of the line of credit up front, with no additional payout to him thereafter. For example, my partner should be getting a $50,000 line of credit, so that'll cost him/us $4,000. Is this typical or is this quite high?

Thank you,

Ray

Hi all, 

My partner and I went to set up our business bank account nearby where he lives (Harford, MD 21085), at the Navy Credit Federal Union but due to technical reasons (me being a partner and no longer being in the military or other Dept. of Defense job), we weren't eligible to do so there. Would anybody here recommend opening a business bank account in a certain bank (i.e. very few/low fees, etc...), or to ask another way, any banks to definitely avoid in regards to opening a business bank account (we want to flip and buy & hold single or multi-family residences in the Baltimore and Harford areas, just in case the kind of activity effects the recommendation)? Any recommendations would be greatly appreciated. 

Thank you,

Ray