.* Also helps to have a financial person - lender, banker etc.. lined up.* It also does not hurt to have either a buyers broker or a lawyer you can ask questions to.  

Here's two scenarios while you are in front of a banker asking for a loan a few years from now:1.

I'm based out of the Lynnfield Coldwell banker and currently have multiple multi family listings.

The Rust Belt, the sunshine, the global economy, the evolution of high tech in a low-tech place, the highways to the suburbs, high taxes, our conservative bankers, stifling politics, recalcitrant unions, the difference between the thinking in blue-collar bars and East Side country clubs, the failure of urban renewal, the disaster of school busing...

Very similar to an investor using a HELOC to quickly purchase an asset, then going to a real estate banker to refinance the HELOC with a mortgage.If the fund gets into trouble and can’t repay, the bank has the right to turn to those investors and basically say “hey remember the commitment you are contractually obligated to send to the fund when called, well – we need to call it to pay off the LOC”.

I'm not a banker but I don't think 570 over 5yrs (?)

I have a good relationship with the bankers there. 

The funny thing was I had a $120k HELOC, only needed $20K to put down, and the banker said NO NO NO.I was just as stunned as you.

Absent a business, what would be the business purpose that a banker could justify being the reason for the loan?  

What I thought was going to be a bunch of Realtors, turned out to be bankers, investors, and people from other professions as well.I am scheduled to take the C101 at the end of April, and am really looking forward to it.