Financing, Equity lines and LLCs

Financing, Hard Money Lenders, Private Money
1

My brothers and I have recently establihsed an LLC, and just today got an EIN, to purchase some pieces of land and hopefully some rental property. We are closing on one lot next week that is NOT with the LLC, but under our own names. Several questions that I hope someone can help me with.

Can we get the personal loan changed to be under the LLC so the loan doesn’t appear under our credit?

Does it make sense to open a lne of credit in the LLC name using the equity in our homes?

We all have good credit ratings: 690, 730 and 820. Combined income of about $230k.

We will probably hold the properties where it makes sense and flip when it makes sense to do that.

Thanks for your help. I’m sure you’ll hear from me again. As soon as a little knowledge is gained, a breeding ground for questions is established!

Mike

2

gen,

once the loan is closed in your name there is no way to transfer the note. you can transfer the deed into the name of the LLC though. however, when you build on the lot, what you need to do is borrow in the corporate name. this way the construction loan will be in the name of the LLC as will the title on the property.

3

Mike,

Christopher is correct. The lender is not going to allow you to change the name on the mortgage. You can transfer deed into the LLC.

4

MD,

Do you know of lenders that will lend to an LLC? I know Bank of America will but it has to be a jumbo loan and done through their retail channel; which does me no good.

5

Mike-

If possible, try to get unsecured lines of credit through your LLC. This way you won’t have the liens against your own home and can keep the two seperate. I’ve done this through my LLC, and the rates through PNC were really good.

6

Christopher, try ABC (American Brokers Conduit)

7

Thanks everyone,

Will have an unsecured loan tomorrow!! It was a matter of a 5 minute phone call.

mike

8

Good for you! :slight_smile:

9

Mike,

Another bank for unsecured lines is M&T. Not sure if they’re in your area, but if so give them a try. Some of the banks will require that your LLC is in business for at least 2 yrs before lending to it, so if you run into trouble I can send you to a broker that started me out.

Good luck!

Greg

10

Thank you this helped. ;D

11

Hey …can someone send me the same info they was sent to the original poster. I am interested in the same deal.

Thanks

12

Viper, All the information is here on the thread. mike

13

My ‘unsecured’ line of credit required a guarantor, which was me, so they told me this line of credit would show up on my credit report. So I chose not to do it.

14

Which bank did you use? I used PNC and the line does NOT show up under my personal credit.

15

I’m using Wachovia. But I’m getting conflicting information (from the bank)as to whether a guarantor generates a personal credit report entry.

16

Since you’re new to this, and you need to establish credit for your LLC, I would use a broker that has established relationships with these banks to assist you.

I’m not sure what states my broker covers, but give him a call and tell him Greg sent you. He is with First Family Mortgage in the Philly, PA area and can be reached at 610-738-7065 X 13. His name is Ron Bradly and he was (and still is) a HUGE help to me when I need financing deals through my LLC.

They have been able to do deals that many other banks would not touch, and their fees are very reasonable.

Greg

17

Thanks for the advice, Greg. I’ll give him a try.

MIke