Posted by Arif TX on January 19, 2002 at 14:46:05:
Now that I think of it a WLOC couold be used for emergency funds in case something happens to one of your properties before you get a chance to build adequate reserves to cover those emergencies.
How can I use a working line of credit??? - Posted by Arif TX
Posted by Arif TX on January 18, 2002 at 13:06:24:
I buy VA foreclosures below market value and rent them out. There has been a lot of talk about working lines of credit on this board. My perception of it is that it’s mostly for those who rehab and flip properties. Please correct me if I am wrong. I can’t see where it would help me when I use vendee financing from VA. If there is something I am missing let me know. Thanks
God bless
Re: How can I use a working line of credit??? - Posted by Daniel
Posted by Daniel on July 02, 2003 at 05:58:19:
Like to understand line of credit, how it works.
Re: How can I use a working line of credit??? - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on January 18, 2002 at 21:40:31:
Arif–(TX)----------------
I agree with you completely. As long as you can afford the fix-up work, why have a line of credit?
And I know that some of the VA offices offer very good financing for those who buy their homes.
Another reason you might want a line of credit is to buy some property at a bargain price from some seller who can not carry the loan for you and will discount for a fast close, precluding your doing normal institutional financing. Then, you buy with your line of credit and refinance the property to hold long term, with the refinance money paying off the line of credit, readying it for the next bargain purchase.
Some people also use lines of credit to buy foreclosure sales, which are typically all-cash at the sale purchases.
The nice thing about a line of credit is that you do not pay interest except on the part that you have borrowed out. As you pay it down, you pay interest on a lesser amount. And it is quick to get the cash.
Good InvestingRon Starr********