05-30-2012 01:52 AM
Everyone, I am new to the board and have a question regarding getting a LOC. I am wanting to start doing some remodeling on the side ( I have done this for years part time), but this time I am looking at purchasing some property.
I am trying to decide the best way to go about this. I am not a business as I have a full time job, W2 etc. I have found an old house that I want to purchase, remodel and put back on the market and sale. This house is around 65k to purchase, and needs about 10k in remodeling work.
My question is, what is the best way to go about this? Should I get a builders LOC? If so what are the best banks, CU;s for approval? What qualifications?
Should I go the aged corp route and PG then just build the corp? I only need 75k - 100k LOC?
I just do not know what is the best and easiest way to go about doing this or where to start?
I am in the mid 700's across the board....768 MyFico Equifax score. Credit lines... NFCU 25k, USAA 20K, Cabelas 3700k Associated CU 2500k.
Thanks for any help or direction.
05-31-2012 07:07 AM
From my observation in getting loans and LOCs in the past, I'd think that a loan would be cheaper for you. I've found the rates are lower than a LOC and like with a LOC, you can always PIF after you finish and sell it, if that's the goal.
If you are going to turn this into a biz, you'd probably want to set up at least a LLC since you are doing the work. You wouldn't want someone to sue for faulty this or that. I'd check with your realtor and banker as they'd be a good resource in how others are doing that as a flipper.
05-31-2012 11:05 AM
Thanks for the advice llecs. I did not know if it would be better , as with closing closts and it being a mortgage installment be worth it over a LOC. Especially doing 1 to 3 a year is my goal.
Did not know if it would be worth it going that route vs installment loans each time
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