Home Equity Lines

6 Replies

Hi All, 

Is it possible to take a home equity line out on an investment property that is under an LLC?

I'd talk with the commercial loan department and ask for an LOC or line of credit, not a HELOC.

@Julian Dozortcev , that's a good question. I have a property under my LLC and I would like to pull equity out of my property.

@Kerry Baird if we go for a LOC, wouldn't that be the same as a PLOC, which would be decided with our personal credit? I need an option directly through my property and I think Julian is seeking the same.

Unless your LLC is seasoned and have a credit rating of its own, it is commonplace to give your personal guarantee. There is a great post on BP (or more than one) that steps you through getting a DUNS number for your LLC, starting with smaller credit lines, etc and building your LLCs own credit. You don't mentions whether yours is indeed seasoned, so I put it out there for your consideration. Lending in an LLC typically falls into the commercial side of the house (bank) and not the conventional. Smaller local credit unions are more likely to be flexible with lines of credit, to include small loan limits.

That is a very great question. I have no idea. Looking forward to these responses.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here