Dec 01

Lines of Credit & Banks

A significant portion of my portfolio has been built on the backs of strong lines of credit. How do you get these lines of credit? Relationships with bank managers. How do you build relationships with bank managers?
Never use the drive through.
Go inside and meet everyone. Make sure they see you and you see them. Make a good acquaintance with these branch managers. Yes, plural. Open accounts at new banks and introduce yourself and tell them who you are and what you are trying to accomplish. Ask for unsecured LOCs. I’ve got abt $150k in LOCs that i liquidate then repay at the end of a BRRRR projects. Ive done this dozens of times. LOCs and private money allow you to make aggressive cash offers. Remember, the acquisition is the hardest part.
Need help establishing these banking relationships? Take $1000 and deposit $250 in 4 new local banks. Wait 30 days, then ask for a $250 secured line of credit. Withdraw the cash and wait one billing cycle. Pay the $5, then pay the whole thing off. Now ask for the unsecured $25k monster. This will be easier now that you are a customer they have already made money on.

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