Quote from @Jay Hinrichs: Quote from @Cristina Melo: @Chris Seveney Thank you for your reply.

Lemos: Quote from @Cristina Millan: Hi Travis, I am looking at investing with Aloha as well.

He has used hard money as well as a line of credit from Chase for his homes.

You could also get a line of credit for about $150k (you should be able to borrow 75% of the value.)The reason I suggest this is…1) you save $40-$60k in selling costs. 2) you have a lower blended interest rate (2/3rds at 3.25% and 1/3rd at 7 or 8% instead of the whole $500k at 7 or 8%) saving you another $1k/mo in interest. 3) you only pay interest on that $150k when you actually use it, not from day 1  Unless you hate this property, or want to buy something you can’t afford without selling, that would be my plan.

Drop me a line to connect, and if you’re in  the Tyler or East Texas area, let’s go get lunch or have a beer.  

Feel free to drop me a line.

A traditional bank will not give a line of credit even if there is significant equity because it boils down to being able to pay back the money. 

That "pipe" is known as a Line Set. 

I’ve been down that road of carrying a line of credit on a property before, and the stress can realy pile on when you’re staring at that monthly interest.

If you’re building spec homes and looking for a line of credit, both options, local banks and private lenders can work, depending on your situation.