I've gotten the impression from reading these forums that real estate companies have a much harder time with getting LOCs and credit cards, and when they do get them they're much smaller. Is that true? What information is used to decide you're a real estate company, a child of a lesser god, deserving of no credit? Can this fate be avoided? For some silly reason I think real estate is better collateral than, say, computers. It doesn't run away or disappear, for one thing. On the other hand, the points and fees earned on a mortgage make them much more expensive than LOCs, so maybe that's why they don't like giving LOCs to RE companies. My business buys, renovates, and resells real estate. Materials can be purchased entirely through trade lines (Home Depot, Lowes), once they're large enough (the starting ones aren't; I would think that these two in particular would want to extend a large TL to a real estate company). The trick is funding acquisition and labor costs. Three $50k LOCs would do it for me, I think ($50k/property + rehab costs, up to 2 properties in the pipeline at a time). This avoids time wasting and costly mortgage underwriting. Just write a check, and repay the line once you sell. I know a number of posters here say they have several of these for their businesses, with PG but no financials, and I would like my business to have the same flexibility they enjoy.
