All Forum Posts by: Robin Evans

@Nathan Gesner Will do. Thanks! 

Update: planning to send him a 30-day notice to end the lease (Tenant also failed to give us 60-day notice to terminate or renew) and he got mad and bitter claiming he was confused about the provision which is stated very clearly in the lease. There is also a co-signer on the lease that is responsible to pay rent if the tenants can't pay. Do we need to send co-signger a lease termination notice as well? @Nathan Gesner

I don't quite follow your question. If you are asking how much we can get, here is what Abbey Credit Union offers: They use 80% of the appraised value of our rental properties and then subtract loan balance, the number is what we can get for the limit of the business line of credit. It does have a 1% origination fee based on the limit we are approved for, an appraisal fee (about $ 50 for each property, not like a real appraisal for selling properties) and some other fees. We can pay fees at closing or put it in the line and make payments on it. The rate is prime rate+1%. We can just pay interest only for the minimum payment. It sounds like a hard-money loan but more flexible. You only make payments on the amount you pull out. It would be great to flip houses: pull money for the rehab, make payments on interest only, sell the house (hopefully make some money) and then pay it off, then do it all over again. 
@Austin Fowler Please see my reply above. Hope it helps. And we are just reading Raising Private Capital by Matt Faircloth and the business LOC can be called BELOC.

 @Nate SanowWe are looking into business LOC as well and found a local credit union that says our numbers on the application look good but most of our equity is in rentals (we have 4 rentals under the business name). They can use our equity in the rentals to approve LOC if we agree for them to put second lien on the properties. We are just very new to second lien and not sure if we should let them do it. But we have to have something to use as collateral to ease bank's mind, right?