In a line of credit, a borrower can take out a loan against a property, up to an approved amount. These funds can be used to fund renovations and can be used repeatedly as needed. Once a draw is paid down, an investor can draw again to stay liquid in renovating or purchasing new properties.
First Bridge also offers renovation draws that can help offer funding in unique situations such as:
- A borrower is building a house, and has run out of funds needed to finish the build. A renovation draw can provide them the extra cash needed, in a short-term loan.
- An investor needs additional funds to finish a renovation, and can take a draw as a line of credit to finish repairs needed prior to selling the property.