$1,000,000.00 line of credit can only be used for real estate purchases such as,new construction,rehab houses,investment property or personal property.
2006-07-09 07:12:11 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Why would I pay anybody anything for the ability to borrow???
Pay 50k so I have the RIGHT to borrow $1mm????
Sounds really silly.
I can fill out a mortgage app or loan app FOR FREE and obtain the right to borrow money.
Does this 50k sound like a good deal to you or something???? I believe you are not really thinking straight on this!
2006-07-09 07:26:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Are you talking about an advance fee of $50,000.00? If so, no I would NOT. Advance fees are illegal in the US. It's a common SCAM!
If you're talking $50,000 per anuum in interest, that's a different story. That's a very good rate (5%) in today's market, so I'd be very interested in that. Interest on real estate loans is paid in arrears, so there's no up-front cost involved, aside from normal closing costs.
2006-07-09 07:23:35 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
What happen if you don't use your whole line of credit,say you use $300.000 an d you see your venture falling through you decide to cut your loses are your $50.000 still lock in.huh that don't sound so good doses it.
2006-07-09 10:48:11 · answer #3 · answered by howaboutit99@sbcglobal.net 2 · 0⤊ 0⤋
I would need to know the rest of the terms.
2006-07-09 07:15:12 · answer #4 · answered by monkey 5 · 0⤊ 0⤋
Only if the interest rate was fairly low.
2006-07-09 07:15:55 · answer #5 · answered by Man with a plan. 4 · 0⤊ 0⤋
No. That's a high fee.
2006-07-09 07:56:22 · answer #6 · answered by Anonymous · 0⤊ 0⤋