Help! Help! Help! I'm in need of a line of credit - Posted by Lisa

Posted by Chuck on June 04, 2001 at 01:25:25:


Help! Help! Help! I’m in need of a line of credit - Posted by Lisa

Posted by Lisa on June 02, 2001 at 20:42:40:

I was wondering if anyone knew of a bank or lending institution where I could obtain a line of credit at hopefully below market interest rate. By the way I do have excellent credit with good income and other assets.

I would like to thank you in advance for your response to my request.


Tough road to hoe, here… - Posted by JT - IN

Posted by JT - IN on June 02, 2001 at 22:02:29:


Why would/should a bank, or any lender, make you a loan (line of credit), at “below market interest rates” ?

Mortgages, secured by owner occupied real property, are the lowest rate that you will find. Unsecured credit gets progressively more expensive and harder to find. Lenders get kind of funny about making a loan to someone, on their (word), promise to repay. Lenders know, from horrific experience, that borrowers can be overly optimistic in their outlook to profit and repay these loans, and that is why they are selfish with offering them.

You will be hard pressed to find an unsecured “Line of Credit” unless you are a well-seasoned investor, with a great track record, and even then, expensive, (2 pts over prime). Wish I had better news…Good Luck!

Just the way that I view things…


Re: Tough road to hoe, here… - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on June 03, 2001 at 15:07:05:

Hate to disagree, but there are available working lines of credit that are at 1/2 point over prime. Now I can assure you that you will not get that line just walking in off of the street. You have to build a relationship. I attended the Lender’s workshop, and there were people there that had secured upwards of $5 million working credit line at 1/2 point over prime. They dealt with small local banks.

Borrow $850,000 on your signature? - Posted by GL

Posted by GL on June 03, 2001 at 14:49:24:

I know a guy who can do it. That is from one bank with no collateral or credit check of any kind.He is an ex school teacher who invests in real estate.

It took him a while to get there - like 25 years.

He started as a student by borrowing $200 for 3 months and paying it back after one month. Then he borrowed $300 and paid it back early. He kept doing this, while building up a personal relationship with the banker. You do this by phoning, writing or dropping in once a month. Tell the banker all the good news, never the bad. He is your banker, not a shoulder to cry on.

Once he got his credit line up in the thousands and the banker knew he was actively investing in real estate he would phone up and explain that in 2 or 3 weeks he might need to borrow a little more than he had ever borrowed before, just for a few days, while a deal closed or some other good reason. When the time for the loan rolled around he would thank the banker for his good work and explain that he had managed the deal in such a way that he would not need the money after all. But his credit limit would now be higher than ever.

He also gives the bank fresh financial statements every 3 months. They now have a whole series of these showing steadily rising business, and net worth.

By doing this over a period of time he gradually worked his credit rating up. Since this was some years back he is probably now over the million mark.

You should be doing this with several banks. He has credit with a number of banks but the one he started with first is the highest.

Re: Tough road to hoe, here… - Posted by emelda Atlanta

Posted by emelda Atlanta on June 07, 2001 at 20:26:57:

Who offered the lenders workshop. And do you
know when it maybe held again?


Re: Tough road to hoe, here… - Posted by JT - IN

Posted by JT - IN on June 03, 2001 at 15:34:22:


If you re-read Lisa’s post, I think that she is “just walking in off the street”, without experience or track record. She will not be looking at anything close to what you have indicated, for some time to come. What someone may be able to get, that has been borrowing from a lender for quite a while, has no bearing on her question.

The 1/2 pt over prime is rare, and certainly not a new investor. It is highly unusual for a person (newbie)to be able to borrow, unsecured, for any reason, without the rate being through the roof, let alone at under the market!


Re: Tough road to hoe, here… - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on June 04, 2001 at 06:29:28:

I think we are saying the same thing. From your post, if someone were a seasoned experienced investor they might be able to get a line at 2 points over prime. I simply indicated that there are seasoned investors that have large working lines of credit at 1/2 point over prime. These investors built their credit lines during a period of about 18 months to 2 years. They had to start small and prove themselves. Plus the $5 million is spread over 3 banks. Not all at one bank.

We both agree that these lines are not something that a newbie would be able to get. In that case, I would suggest other forms of financing. Perhaps an equity line of credit on a property you own, or bring in private investors.