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?

Handling Unforseen DelaysA clause should address unexpected events beyond human control, including weather-related delays, natural disasters, supply chain disruptions, or unforeseen structural issues.

But during the buyer’s due diligence, several unexpected issues surfaced, each cutting deeper into the profit I had worked years to earn.The first issue was with the water lines.

What are your long term goals (eg do you want to buy another house) and do you have a large savings set aside for unexpected expenses? 

Partial Disposition Benefit: In a cost segregation study, components of a property are identified and depreciated on shorter schedules (like 5, 7, or 15 years).

That is higher than most, but we want to see you succeed and only way to do that is to be sure every investor has room in the rent income to service unexpected issues. 

Prioritize properties with strong rental potential and set aside reserves to handle unexpected costs.Finally, familiarize yourself with tenant laws in your target market, especially in Portland, and consult a real estate-savvy CPA for tax efficiency and legal considerations.

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

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.

I didn’t know the details about a project we’re working on, and it showed.Lesson learned: Always prepare thoroughly before each call and be ready for unexpected questions.Failures like this are uncomfortable, but they're how we grow.