But I’ve never personally invested in real estate using business credit more traditional for my first property, so I’m always curious when clients say they want to use this funding for a real estate deal.Here’s where I get stuck:Real estate deals can be risky, especially if the project takes longer than 12 months to close or unexpected costs pop up.With prices climbing, it feels like the margin for error is smaller than ever.Would you recommend someone use business credit to invest in real estate?

I cant tell you how many rescue loans Ive underwritten for small businesses who relied on a LoC for liquidity and then had the line frozen or called unexpectedly.

And don’t forget your own network—sometimes lenders come from unexpected places.

This is true, but can increase your chances of success by working with an experienced team.Financing Challenges: Unexpected rate hikes or tightening lending restrictions can complicate your plans. 

Covid was something unexpected and the way the sponser deals with it and the communication with the investors is also important to note.

It’s crazy how trying to stand firm can sometimes backfire in unexpected ways.

We also do a property orientation and show them how to operate the house, change filters and batteries, turn off water main - and of course the mystery of GFCI outlets

@Hamidou KeitaTo build a duplex or ADU in Tucson, verify zoning regulations, obtain construction estimates, budget for unexpected costs, research market rent and vacancy rates, calculate ROI, consider neighborhood and property value trends, analyze construction timeline, consider exit strategy, and consider a backup plan.

Kitchen cabinet handles were placed upside down, cabinet doors were installed backwards, electrical line for thermostat was ran on the inside of the bedroom exposed, trash swept into newly installs vents from the furnace, cracked tub, wall switches were installed sideways in some rooms, wall outlets were installed upside down on some walls, list goes on.

Rising interest rates, slim margins, and unexpected costs can kill a deal fast.