I have $95k in personal lines of credit…can I use this money for downpayment on commercial loan? Also, as a new llc are we able to purchase the property in llc name and obtain mortgage in llc name? Thanks
as a total BEGINNER still looking for my first time purchase the only thing that runs across my mind is a line of credit PLUS a mortgage is ALOT of interest to pay monthly. I don’t beleive a line of credit interest is tax deductible (i’ve read) so you couldn’t use it for a write off or cost/expense.
Another thing would be if it’s on an adjustable basis… that would vary your payment a bit.
I’m using my lines of credit for deposits and holding costs. The interest I pay on my monthly payments are tax deductible. I would have no problem using my lines for a downpayment…as long as my exit strategy was to flip the property or re-fi in 3-6 months and pay down the line of credit.
I purchase my properties under my LLC name and the mortgage’s are in my LLC’s name. Hope this helps,
Thanks for clearing up the tax thing Nate, I’ve always wondered myself. I read a couple books stating that you can not, yet, i’ve read other places that it’s no problem… go figure.