Investors; Why Real Estate Lines Of Credit ?

“Scoring” a Real Estate Lines Of Credit can be a great way to use your current equity in your properties to build your investor portfolio. Find out how easy it can be to draw capital on what you already own.

Are you an pansy Real Estate Investor? Do you find that there are more deals slipping through your fingers than you can fund at any given time? Do you feel like you are on the verge of becoming one of the “bigger fish” but are just falling short due to lack of available cash? Obtaining a single or multiple Real Estate Lines Of Credit is one of the best ways to use your current equity to help fund new and exciting real estate ventures.

But how does one secure Real Estate Lines Of Credit? Well it is easier than you may think. Sometimes called “Acquisition Credit Lines”, Real Estate Lines Of Credit can be obtained at most financial institutions. Though all financial Institutions are different and have different rules and processes, a line of credit to and investor with current real estate equity can happen as quickly as 30 days. Once you are approved, your accounts are funded very quickly in most cases.

How does it work? Well once you have secured your Real Estate Lines Of Credit, it could be used much like a credit card. No need to wait around for funding and underwriters to close that deal. You can get your deals done fast, beating others to the punch, who have, in the past, perhaps got there before you. The playing field is evened because you now have the cash on hand.

Other benefits of having real estate credit lines include small or no upfront fees, no appraisals, no secondary collateral, and absolutely no restrictions on use! Absolutely none! One of the greatest assets of securing Real Estate Lines of Credit is that it gives the investor the ability to do any type of real estate deal! Commercial, house rentals, Multi units, flips; with this kind of credit line, the investor is now on a level playing field as the “Tycoon” and is not limited to one kind of real estate deal.

Having ready “cash On Hand” available for an investment in real estate is a huge asset in an overall investment strategy. It may be just one part of your overall strategy but in most cases, it will be one of the most important ones.

As mentioned earlier, financial institutions differ greatly, so you should consult with multiple lenders to see what they offer. It is also a pretty good idea to consult your attorney and independent financial advisor to assess your personal situation before you dive head first into Real Estate Credit Lines.

So don’t be left behind or limit yourself as an investor. Real Estate Lines Of Credit are both easy and quickly secured. But more importantly, they give the investor the flexibility to make many kinds of deals and the agility to do it quickly.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

The Differences between Unsecured vs.Secured Real Estate Lines of Credit

The main difference between unsecured and secured real estate lines of credit, comes down to how these loans are secured. Both loan types offer you a similar degree of flexibility and savings when compared to traditional financing. Evaluating the cost of both loan types can help you figure out which type of loan is right for your specific situation.

Your personal property provides security in the case secured lines of credit. Personal property can range from your primary residence to anything your business owns or some other form of collateral. With an unsecured line of credit, the loan isn't secured by anything except for your lender's estimation of your financial strength.

Now, why not just apply for a regular term mortgage to finance your next real-estate purchase?

With a term loan of any sort, a lump sum is given to you up front. No matter how much money you spend, you still need to make interest payments on the full loan amount. In addition, with term loans, you generally need to take a new loan out to finance each separate acquisition. A line of credit gives you far more flexibility. With a line of credit you only owe and pay interest on the amount you spend, and you don't need to apply for a new loan with every new purchase of real-estate.

Both unsecured and secured real estate lines of credit offer flexibility and savings over standard term loans, but there are some differences in terms of costs.

A secured line of credit is taken out and is secured by some form of collateral, which offers your lender a degree of safety should you default. By mitigating risk, lenders can provide lower interest payments on secured lines and larger credit limits. Nevertheless, with a secured loan of any sort, credit line or term loan, your personal or businesses assets at risk.

With unsecured credit lines you the borrower don't risk your personal property if you default.  However, lenders need to protect themselves in some way, and so unsecured lines offer lower credit limits and entail higher interest rates, Unsecured lines also come with far more stringent qualifications versus their secured counterparts.

With secured and unsecured real estate lines its important to evaluate the costs of each loan type. This can help you determine which type of loan is right for your specific situation.

A secured line of credit is an excellent idea if you are confident you can pay back whatever you spend, as you don't want to lose your personal property in the course of expanding your business. Because secured lines offer lower interest payments and larger limits, it is probably best to employ a secured line of credit for making full offers on properties.

Unsecured lines may be more expensive, but they are an excellent way to reconcile differences between offers you want to make and the amount of cash you actually have on hand.  You should employ unsecured lines only when necessary due to the higher interest payments involved.

In both cases having access to a credit line allows you to quickly close deals on investment properties. With a credit line, you don't need to wait on a lender to make a full offer, which can give you an edge over competing buyers who might need to wait on financing. In addition, credit lines can offer significant long-term savings over term loans because only pay back and pay interest on the amount that you spend.

As with any type of financing, consider the costs, the risks and the benefits of each type of credit line to figure out which one is right for your specific situation.

 Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions