Detroit, MI (1888PressRelease)
September 15, 2007 - Real estate investors face one major challenge above all – getting the right funding for a hot deal without the delays, headaches and roadblocks that go with typical real estate transactions.
For seasoned and new investors, alike, a dependable source of financing is critical for success. There are a number of alternatives.
Conventional Loans – This is where many investors land. There are certainly many reasons for an investor to use the standard mortgage alternatives. For the investor who wants to buy, hold and rent, conventional sources may be the best option. A long-term interest-only loan may be ideally suited for the investor who has good credit, plenty of assets, and can generate positive cash flow. However, the current mortgage environment is tough. Most lenders have said goodbye to high loan-to-value mortgages and high debt-to-income borrowers. The banks just don’t want to take the risks they took only a year or two ago.
Private Money – A great source for funding deals is private money. Find a private lender with deep pockets and a desire to have a good return secured by real estate. They get a great return and you, as an investor, can fund deals without the constraints of a traditional mortgage.
There are drawbacks with private money, though. Let’s say you are ready to close on a fantastic opportunity. You think the private lender is going to be there with enough money to fund your deal, but that’s the week he decides to take the extended family on an all-expenses-paid cruise to Maui. You are out of luck and standing there without the funds to close. You not only lose the deal, but you lose credibility with your realtor, who may not bring you the hot deals again. And, almost any private lender has limits on how much he is willing to lend.
Hard Money – One way to fund your deals, especially quick-turn transactions, is through borrowing hard money. Usually the interest is steep and points are charged on every transaction. In addition, a hard money lender is usually only willing to lend up to 65-70% loan-to-value. Your property is used as collateral, and if for any reason you default, the lender won’t hesitate to foreclose.
Line of Credit – One of the best ways to fund short term real estate transactions is through getting a line of credit. The best approach is to have an unsecured credit line that is tied to your real estate investment business, rather than your personal credit. A sufficient line of credit let’s you purchase a property, rehab it, resell it, and start all over again.
Investors can go to the Web site at http://www.GetBusinessLinesofCredit.com to apply for an unsecured line of credit. To get the line of credit, the investor must have or establish a corporation or a Limited Liability Company (LLC). The line of credit can be used for any purpose. It is established based on the owner’s credit score, but uses the business tax id. Therefore, the line of credit does not appear on the owner’s credit report.
A minimum score of 675 is required to qualify for the line of credit. The borrower must also have a credit report free of delinquencies or bankruptcy.
The site at http://www.GetBusinessLinesofCredit.com can even provide new businesses with up to a $100,000 line of credit, even if they have a brand new LLC or other business entity. Business owners with an established business can get credit up to $500,000.
Real Estate investors or other business owners can use the line of credit for any reason, including:
• Wholesale real estate transactions
• Quick flips
• Short term cash flow
• Capital investment
• Business startup
• Growth
• Invest for High Yield returns
• Short-term equity replacement
• Debt consolidation to clean up personal credit used to fund a business enterprise
• Business Reserve
Well known real estate investor Ralph Marcus Maupin Jr. (Mark) says that a business line of credit is the perfect vehicle for Real Estate Investors. One of the founders of the National Real Estate Network (NREN), Maupin says that a line of credit is almost a necessity for the real estate entrepreneur or property manager.
“Having a line of credit is the best way to take advantage of quick turn real estate investment opportunities. When a good deal is there, you have to have the cash to take quick action,” Maupin says. “It gives you a great competitive advantage.”
The National Real Estate Network has identified
http://www.GetBusinessLinesofCredit.com as an important resource for its member investors.
Credit lines are available in the following states:
Alabama (AL), Alaska (AK), Arizona (AZ), Arkansas (AR), California (CA), Colorado (CO), Connecticut (CT), Delaware (DE), Florida (FL), Georgia (GA), Hawaii (HI), Idaho (ID), Illinois (IL), Indiana (IN), Iowa (IA), Kansas (KS), Kentucky (KY), Louisiana (LA), Maine (ME), Maryland (MD), Massachusetts (MA), Michigan(MI), Minnesota (MN), Mississippi (MS), Missouri (MO), Montana (MT), Nebraska (NE), Nevada (NV), New Hampshire (NH), New Jersey (NJ), New Mexico (NM), New York (NY), North Carolina (NC), North Dakota (ND), Ohio (OH), Oklahoma (OK), Oregon (OR), Pennsylvania (PA), Rhode Island (RI), South Carolina (SC), South Dakota (SD), Tennessee (TN), Texas (TX), Utah (UT), Vermont (VT), Virginia (VA) , Washington (WA), West Virginia (WV), Wisconsin (WI), Wyoming (WY)
Credit lines are available in following Major Metro Areas:
Albuquerque, Atlanta, Austin Baltimore, Boston, Charlotte, Chicago, Chico, Cincinnati, Cleveland, Columbus, Dallas, Fort Worth, Denver, Boulder, Detroit, Ft Lauderdale, Palm Beach, Harford, Houston, Indianapolis, Jacksonville, Kansas City, Las Vegas, Little Rock, Long Island, Los Angeles, Memphis, Miami, Milwaukee, Minneapolis, St Paul, Monterey, Nashville, New Haven, New York, Oakland, East Bay, Oklahoma City, Orange County, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Puerto Rico, Raleigh-Durham, Reno, Tahoe, Rochester, Sacramento, Salt Lake City, San Francisco, San Jose, Silicon Valley, Santa Fe, Seattle, Spokane, Springfield, St. Louis, Tampa, Toronto, Tucson, and Washington D.C.
For further information: info ( @ ) www dot GetBusinessLinesofCredit dot com
Web site: http://www.GetBusinessLinesofCredit.com
