Wealth-Coaching

Having the cash on hand for real estate investment can sometimes be difficult until you get your properties in the black.

A line of credit may be an option for you however, there are some things to consider before using this option:

• When using an equity line of credit on an existing property, remember that you could lose your property if you default.
• Equity lines and credit lines have higher interest rates than normal loans.
• Having a line of credit can be beneficial if you are in need of cash quickly.
• It is a good alternative to traditional loans in that the money is there when you need it without having to get approval each time for a separate advancement.
• When you have an established base of properties you could have a line of credit that is not attached to your real estate.

Having a line of credit with a local lender is a good idea if you can get it a large enough line to carry a home purchase of at least a downpayment if needed.

Remember that you want to push captial for paying the line down if making revenue from rental property or the sale of some real estate.