Line of Credit (LOC)
A revolving credit facility used to fund property acquisitions and rehabs.
A line of credit is like a credit card for real estate investing. A lender approves you for a maximum amount (e.g., $500K). You draw against it to buy and rehab properties, then repay when you refinance or sell. Interest accrues only on the drawn amount. LOCs are the fuel of BRRRR investing — they let you move fast on deals without waiting for traditional mortgage approvals.
Utilization = Current Balance / Credit Limit Monthly Interest = Balance × (Annual Rate / 12)
Kaison tracks your LOCs in Financials → Lines of Credit. When you run an analysis, the engine pulls your LOC rate and balance to calculate carry costs. It also flags portfolio-level risk if utilization exceeds 75%.
You have a $400K LOC at 9%. You draw $165K to buy and rehab a property. Monthly interest: $1,237.50. After 5 months and a refinance, you repay the $165K. Total interest paid: $6,187.50 — this is part of your carry costs.
Keep utilization below 70%. Above that, your risk per deal increases because you have less cushion if a project runs long. Kaison flags this automatically.
Carrying Costs (Hold Costs)
Monthly costs of owning a property during renovation: interest, insurance, taxes, utilities.
Hard Money Loan
A short-term, high-interest loan backed by the property, not your credit.
LOC Utilization
How much of your line of credit is currently drawn — higher means more risk.
Refinance (Refi)
Replacing short-term acquisition debt with a long-term mortgage based on the improved value.
Educational content only. Consult a CPA or attorney for advice specific to your situation.