Is a line of credit loan the best?? We can get up to $400,000 in a line of credit as we have our own house. Would LOC be the best for people in similar situations?
G’day…
Yes and No!
Provided you realise it’s a big bit of plastic and use it wisely LOC is the way to go. You only pay interest on what you have drawn and you can always “park” unused funds to offset any interest.
Used to it’s full extent, why not pay all rent and other salary/income into the facility?
Maybe even get a sub account as a LOC as well. Divorce the biz from Private.Another plus is that you are then your own banker and can draw on funds as required for an investment.
I trust you are considering the Share Mkt and not relying on the R/E Bull run to continue for much longer.If it’s taken 6 years for you to be game enough to get on board…don’t you think you might have missed the bus?
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]LOC is the most powerful finance tool available however be sure to have your plan in place so you can use the tool to its potential.
Just like all tools if not used correctly they won’t perform the best.
Any other means of lending gives the lender more power over future changes.
Craig
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