Equiy line of credit? - Posted by CH - San Diego, CA

Posted by Robert McNeely on May 01, 2000 at 22:25:03:

I see nothing wrong in using your equity line if you use care in selecting your deals. In my area $25K would fund 5 to 8 deals, generating notes for $50k to $75k. I find when using an equity line, (I have on several deals) it is harder to keep track of where the money went. A better solution might be to do a couple of deals to show a banker your capabilities, then look for a bank that will fund your deals separatly if you let them hold the created note as collateral. It is nice to know that that $260 payment comming in will pay the much smaller bank payment, and the left over is profit.

Equiy line of credit? - Posted by CH - San Diego, CA

Posted by CH - San Diego, CA on May 01, 2000 at 11:21:29:

Ok, this might be a dumb question, but I was wondering if it would be smart to use an equity line of credit to fund my deals (or others? deals)? I have about $25K to use, if I want to. To me, it seems almost the same as partnering with an investor or selling a partial. Actually, maybe better with the interest rate and payback terms.

Is anyone out there doing this? Any feedback? I just want to make sure I’m not missing something here.

Thanks for your input,

CH