Current Asset Statements (Stocks, Bonds, and RE Owned may be considered)
Current Financing Structure (Rate and Terms with Current Lender)
Data Tape of Completed Flips
Rehab/Build Plan or Projection for the Next 12 Months
Line of Credit
A line of credit is a revolving account that lets borrowers draw and spend money up to a certain limit, repay this money (usually with interest) and then spend it again.
The most common example of this is a credit card, but other types of lines of credit, such as home equity lines of credit (HELOC) and business lines of credit, exist.
Let’s walk through an example of how a credit card works. When you get a credit card, the bank or credit card issuer sets a maximum credit limit that you can borrow, and you will be responsible for repaying what you spent each month. For instance, the bank may offer you a $5,000 credit limit. If you spend $2,000 one month, that means you can only spend an additional $3,000 before you reach your credit limit. Once you repay the $2,000 you spent, you can then spend up to $5,000 again. Credit cards are a bit unique in that if you pay your balance in full every month you won’t have to pay interest on the charges. Other lines of credit will charge interest each time you draw from them.