A Real Estate Line of Credit, Essay Example

The article “why a real estate line of credit is a smart choice for investors” is a business article authored Marco Carbajo. The article’s main objective is to highlight the various financing tools that are available for real estate investors. In this article, Marco intends to help the real estate investors evaluate financing methods that are favorable for them. Marco Carbajo is a credit expert; he has extensive knowledge and experience in this field. In fact, his articles and blogs have featured in fox small business, the Washington Post, and even New York Times. This gives him the authority to write and provide professional advice regarding this topic.

In this article, Marco presents a number of financing options available for the real estate investors. They include conventional mortgage, hard money, owner financing private money, commercial loan, and home equity loans. However, Marco pays special attention to a popular type of real estate financing methods, which is a real estate line of credit. The author recommends the method to a wide range of real estate invention options, whether investing in commercial real estate, family home, or apartments (Marco, 2014).

Marco further split the method into secured line and unsecured line of credit. Although the Marco appreciates that a secured line of credit allows an investor to take advantage of the equity in their investments, he believes that unsecured credit line will offer an investor much more benefits. Some of the benefits of the secured line credits include no collateral, appraisal, upfront fee, restriction on use, and documentation. Marco believes that when an investor has access to cash without the restriction is what every real estate investors need, I also find this to be true.

Marco has effectively presented his ideas in a simple and clear manner. Weighing on the advantages and disadvantages of secured and unsecured real estate’s credit line, he concludes that unsecured credit offers more benefits to an investor. The information provided is valid and useful to any real estate investor.

Reference

 Marco C. (2014). Why a Real Estate Line of Credit is a Smart Choice for Investors. SBA gov Retrieved fromhttps://www.sba.gov/blogs/why-real-estate-line-credit-smart-choice-investors