Fix and Flip

Utilizing a Line of Credit to do More Deals

Utilizing a Line of Credit to do More Deals

As an elite fix-and-flip real estate investor how can you leverage your experience into doing more deals? One option is a line of credit. A line of credit is an excellent option for you as an investor if you are looking to have quick access to funding and grow your fix-and-flip business. In this blog post, we will explore three advantages of a line of credit and how they can help you as an investor.

1) Lower Interest Rates

A line of credit offers lower interest rates for experienced investors. These lower interest rates result in less money out of your pocket each month on your monthly payment. With the Lima One Capital Line of Credit program rates are as low as 7.99% and the rate is based on your experience completing flips over the past 12 months. To qualify, you must have completed 15 or more flips within the last YEAR.

2) More Streamlined Underwriting Process

With the line of credit program, you will be underwritten as a borrower once to see if your company will qualify for the line of credit. As mentioned above, some of the requirements include fix-and-flip experience, credit score, and liquid assets. If approved, you will have access to the line of credit for 12 months and will be able to draw funds from it over that time period. This helps you speed up the underwriting process and avoid going through borrower underwriting each time you have a deal that you need financing for. With multiple investors bidding on properties it is important to have the capital necessary to purchase the property quickly and the line of credit allows you to do that.

3) Flexibility

A line of credit offers you flexibility because you are able to choose how you want to use the funds. If you have ten properties that you want to draw funds off the line from then you have access to that capital to do all ten of those deals if they qualify. If you would rather do two or three larger projects you can use the same funds for those deals as well. Being able to have the options of how you want to use the funds on the line is another key advantage of using a line of credit.

A line of credit is a great option for you as an elite real estate investor because it gives you the speed and flexibility you need to continue to grow your fix-and-flip business and do more deals. Having access to capital quickly is what can help separate you as an elite real estate as you continue to work and grow your fix-and-flip business.

At Lima One Capital we are the nation’s premier lender for real estate investors. We make it easy to finance all of your fix-and-flip projects, rental properties, and multifamily investments. We lend across the country in 42 states including Washington, D.C. If you’re interested in learning more about our line of credit program click here.