Line of Credit on Property in LLC
Hello, I have some free and clear properties in Texas, Mississippi, and Nevada. I would like to put "friendly" liens on them as a barrier to fraudulent transfers, which are apparently on the rise. Which banks are allowing low fee HELOCs on properties in LLCs? Alternatively, does anyone know of a loan originator who can help me create my own friendly line of credit from one of my LLCs and record the liens?
Most Popular Reply
Best thing to do is utilize the equity and pull out some cash to buy more properties. The mortgage from the cash out is the Lien and can be set up in an LLC or vested in your name.
DSCR is great and offers 30 year fixed, 5/6 ARM even a 40 Year I/O Interest Only fixed for the first ten (10) years.
Much better than having a smaller Heloc $20K+ which will have a higher rate and a shorter amortization. That typically results in a higher payment and an open end mortgage (Credit card) versus cash in the bank that can act as an Asset and PITI reserves where a Heloc cannot.
Feel free to reach out if you have any questions, I enjoy helping and talking REI.