stupid LOC question - Posted by eric-fl
Posted by eric-fl on March 06, 2001 at 10:39:23:
I am going to see if I can get an unsecured LOC from a bank. I’m having a little trouble coming up with an answer to one anticipated question - “What do you intend to use the money for?” I’m thinking that “Well, I plan to use the money to purchase discounted secondary equity positions on properties that I intend to purchase subject to the underlying financing, through the use of a land trust and subsequent assignment of benefical interest, so that I can then turn around and resell them on an installment land contract”, might not be the best answer.
What are some typical uses for an unsecured LOC that a bank likes to see? Home improvements? I’m concerned that if I denote that this would be operating capital for a business, that would trigger a request for a business plan, which I can furnish, but I’m thinking that puts me back in the same position as above. Are there any non-real estate reasons a bank might like to hear?