SACRAMENTO, CA – 17 May, 2017 – When it comes buying and selling residential real estate, the more sources of funding for successful ventures, the merrier.
Many experienced investors already use a range of traditional and non-traditional financing strategies, varying from conventional mortgages to joint ventures to hard money loans. However, a growing number of investors are utilising business lines of credits to fix and flip residential real estate. With this method, even newcomers to the table are able to access high levels of capital in order to purchase and flip property.
How does it work?
With an acquisition loan, borrowers can submit an application purely using their financial standing and their profile as investor, rather than being reliant on an existing portfolio.
Many other loans are granted based on the equity in an existing portfolio, which can present an obvious hurdle for new investors. When using an acquisition line of credit, even beginner investors are able to qualify, which can provide newcomers to a substantial amount of capital to find, acquire, fix and sell real estate. With a positive financial track record, applicants could potentially be approved for a line of credit ranging from $1 million to $50 million.
Benefits of obtaining a business line of credit
An acquisition line of credit enables investors fast and easy access to high levels of capital required to successfully develop a real estate business.
According to Mica Coleman, Best Selling Author of The Entrepreneurs Guide to Business Credit, although the strategy is now gaining attention, it is already commonplace among seasoned investors. “Many investors have used lines of credit to rapidly create wealth through buying and selling real estate,” she says. Coleman frequently holds workshops to help individuals establish business lines of credit, and notes that while there are certain criteria that make a great candidate for a business line of credit, even those who have experienced past difficulties can improve their credit score. “An investor may think because they have encountered financial troubles that they won’t qualify for an acquisition line of credit, but in truth with the right help, credit scores can be repaired following bankruptcies, foreclosures and even repossessions.”
Once the line of credit has been approved, investors can draw upon the loan as and when is needed to close a transaction, provided they can provide a executed purchase contract. Furthermore, the line of credit can be accessed multiple times at once, which is ideal for fix-and-flip investors who are typically working on a number of projects at any one time. “There is typically less to pay in the way of interest, fees and transaction costs that with other forms of lending, which can also increase the amount of money in an investor’s pocket each month,” adds Coleman.
Company Name: Healthy Financial Futures
Contact Person: Mica Coleman
Country: United States