Having cash at the ready is a prerequisite to be a successful real estate investor. There certainly other important aspects of the business including keeping a clean credit report, cash flowing and being able to quickly evaluate an opportunity. But having readily available cash means having the ability to snatch up a bargain, place an earnest money deposit or make emergency maintenance repairs on units they own. But many investors don’t like to park any sizable amount of non-interest bearing capital in a checking account. In fact, it may be a situation of needing a certain amount of cash on hand but it’s simply not available.

One source of cash can come from a credit card account. This of course will vary based upon the profile of the investor but cash advances from a credit card carry a higher than usual interest rate and the cost of funds can get rather pricey. Instead, some investors have a standing credit line on one of their properties that they regularly use and repay as needed. And it’s one of the least expensive resourcereal estate investings for ready cash.

A line of credit on a primary residence will provide the lowest interest rate but even a line of credit on an investment property is still much less expensive than a credit card cash advance or persona loan. The line of credit is secured against real estate, an appraisable asset, and interest is only charged when funds are withdrawn. Once the loaned funds are replaced, the credit line is replenished and interest charges cease.

A home equity line of credit is convenient and can be accessed 24/7 simply by writing a check against the account and because it’s revolving, the account can be used over and over again. It’s very much like one large piggy bank. Only people can live in it.