Saw your conversation about funding and we are in the same boat but are a newly formed LLC. We are building our business plan, resume(as short as it is) and hope to list members of our team for the business of quick turning foreclosed houses. Any advice on our presentation?
First would a line of credit be our best choice and second how likely is a new LLC to get a decent line?
Are you trying to get an unsecured LOC? Or are you trying to get an LOC on a property you already own? Both are going to be VERY difficult right now to do and you’re definetely not going to get either one without a personal guarantee.
We know we need a personal guarantee and our personal credit scores are good, but this is our first pitch for an LLC loan or business line of credit, and I have heard there are just differences from the conventional loan process. We are a newly formed LLC(new as in 2 weeks old). Just need advice on preparing and pitching a business loan proposal for the first time, seems dunting.
I’m sorry, I meant, it seems daunting…LOL
I agree it’s very much daunting. I have 4 duplexes and I renovated one out of pocket at a cost of $50K. I put that one in my name. I had to transfer it from my LLC to get an ELOC on the unit. After completion I pulled $37.5k out of the unit to put towards renovating my other three units. I need additional funding to renovate the other units but it’s almost impossible to get a commercial loan now days. I’m searching and if I find a source you can bet I’ll share with everyone out there.
Actually, if may be in your best interest NOT to share your sources with everyone, in the name of protecting your own biz interests. What I’m finding locally, (and other investors/lenders in my area have concurred with this observation), is that when word gets out of a particular lender doing a particular type of loan, word spreads like wildfire and the lender gets inundated with calls/inquiries about these loans. Then, customer service goes down the drain, as the lender has to wade through all the bs and garbage inquiries, wasting time in the process. Or the lender gets so overwhelmed that they tighten up further or pull the product, making it IMPOSSIBLE for anyone to get funding, even the experienced pros!
Play your hand close to your chest and proctect yourself, if you want to grow your biz, that’s all I’m saying…
I agree Jake. One local lender gave us a tip saying" call early and often because many of us our hitting our max of new borrowers". I guess with all the residential guideline restrictions happening for those of us with an LLC and/or holders of several properties, these local lenders are getting swamped. If you find one, don’t be too quick to blab.