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05-20-2009, 07:08 PM #1
Fixer Upper
- Join Date
- Feb 2007
- Posts
- 87
$1.2m LOC
I just ran across a funding option that is very interesting. I went through the process, and have a LOC now of 1.2m at 9%.
I have not exercised the line, and am looking at different options.
What would you guys do?
Brad.Follow up, follow up, follow up, follow up untill they BUY or DIE!!
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05-21-2009, 11:00 AM #2
Fixer Upper
- Join Date
- Nov 2008
- Location
- Oregon
- Posts
- 80
Run the numbers. Assuming accurate and conservative projections on the property you are interested in pursuing, does the income not only cover the 9% but give you a decent return on whatever you are putting up?
I usually like to see a minimum of 8% return on my investment, and in this market I think 12% is more reasonable.
Oh, is that line locked at 9%. If it's variable, or adjusts in the future, personally I wouldn't use it for anything that I couldn't pay off completely in 12 months.
Oh, ps. Watch out for predators who want a piece of that. Since you have a LOC that you can draw on at will, you don't have the bank protecting you with their safeguards with a conventional loan.property management software - Free software for managing your rentals
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