Keep Your Rehab On Track With A Commercial Real Estate Secured Line of Credit
We have an unique product for the real estate investor focusing on short term buy-fix-sell. Our Lender offers a Lind of Credit (LOC) but with a twist. This unique LOC comes with an implicit preapproval for an 80% first mortgage on any non-owner occupied property the investor wants to buy.
Example: Investor gets a $200,000 LOC against properties he or she owns, then it’s really worth $1,000,000 in purchasing power (assuming it’s not used for rehab or closing costs)!
- Investor finds $100,000 house.
- The Lender puts a 1st mortgage against the house for $80,000.
- The Investor draws $20,000 from the LOC and pays the rehab and closing costs out-of-pocket.
- There’s still $180,000 left on the line of credit, so the Investor can repeat this 9 more times until he or she has the $200,000 LOC maxed out and $800,000 in new mortgages – a $1,000,000 portfolio starting with just #200,000 in equity.
- Results vary depending on how much, if any, is drawn against the LOC for rehab expenses and closing costs.