Lenders for HELOC on LLC-owned property w/ self-employed income?

Question

Own a single-family property in Denver, CO area outright (cash purchase previously) in an single-member LLC and needing to setup a HELOC to access equity in the property intermittently to fund other real estate investments on a short-term basis. Existing tenant in moving out in ~1 month and may convert use to primary residence or retain as SFR, but TBD. Recently went from W2 to self-employed (income still ramping up) too.

Any direction on what lenders offer HELOCs for this situation, or alternative ways to accomplish the same thing?

Additional details on property and situation below:

• - Property Value: ~$1.5-1.6M
• - Existing Debt on Property: $0 (100% equity)
• - HELOC Amount: ~$500k-$700k / 30%-50% LTV
• - Ownership: Single-member LLC (need to keep property in LLC structure)
• - Property Use: TBD if primary residence or SFR - existing tenant moving out in ~1 month
• - Income: Self-employed (little income so far due to ramp-up period, significant cash reserves and other non-real estate assets however)

Appreciate any guidance and direction on this!

Joyce Ann Magallanes · Answer

Hi John,

We are hard money lenders and offer a HELOC program that can be customized to your needs. If you prefer to qualify using your income, we can accommodate that. Assuming business tax returns are not yet available, we can proceed using 12 months of personal bank statements. We can fund up to 50% LTV.

Benjamin Aaker · Answer

A commercial line of credit is a good way to go. Do you have a prior relationship with any banks? Ask to speak with their commercial banker.

Another option would be to finance the property and keep the money in some short term interest-bearing accounts.

Erik Estrada · Answer

Have you tried talking to local commercial banks? These loans are very hard to come by.

Have you also considered a DSCR loan instead?

Lauren Robins · Answer

You're in a strong equity position, owning a $1.5–$1.6 million single-family property in the Denver, CO area outright through a single-member LLC. You're seeking a HELOC of about $500K–$700K (roughly 30%–50% LTV) to intermittently fund short-term real estate investments. However, there are a few complications that limit your traditional lending options: the property is held in an LLC, your income is currently low due to the ramp-up of your self-employment, the property's future use as a primary residence or rental is undecided, and you're looking for a revolving credit product, not just a one-time loan.

Traditional banks rarely offer HELOCs on properties held in an LLC, especially a single-member LLC. They also usually want the property to be owner-occupied or, at the very least, not have ambiguous use. Additionally, most lenders prefer clear, verifiable income history, which you don't yet have. As a result, your best shot will be with specialty portfolio lenders or private lenders who offer asset-based or DSCR (Debt Service Coverage Ratio) loans. These lenders include Kiavi, Lima One Capital, CoreVest, Anchor Loans, Roc360, Easy Street Capital, and Temple View Capital. They often offer interest-only credit lines or short-term loans secured against equity in LLC-held investment properties, using the property's cash flow and your overall financial profile rather than W2 income. Rates are usually higher than traditional HELOCs (ranging from about 8%–12%), but they’re far more flexible with title structure and income requirements.

Another route is to explore a business line of credit secured by real estate. Some local or regional banks in Colorado may offer a commercial equity line of credit to LLCs if you present strong assets and a business plan. These are less common but can be arranged with the right banker, especially if you already have an operating LLC and a track record, or at least significant assets under management.

If you can’t find a suitable HELOC option, a delayed cash-out refinance using a short-term, interest-only loan could serve the same purpose—freeing up cash while maintaining flexibility. While not revolving like a HELOC, this can be a temporary solution with favorable repayment terms. You may want to look at lenders offering 1–3 year investor loans that don’t require traditional income documentation.

Since you mentioned significant non-real estate assets and cash reserves, another option could be a securities-backed line of credit (SBLOC). This can be arranged through private banking arms of firms like Schwab, Merrill Lynch, or JPMorgan. These lines are secured by brokerage assets, not real estate, and are highly flexible. They typically have lower interest rates and minimal underwriting friction, making them ideal for short-term capital needs.

One critical decision point is whether you will move into the property. If you convert it to your primary residence, you’ll have access to far more favorable HELOC terms from traditional lenders. In Colorado, institutions like U.S. Bank, KeyBank, Ent Credit Union, and Bellco Credit Union offer attractive HELOC products for owner-occupied homes. However, you may need to temporarily move the property out of the LLC and into your personal name to qualify, unless the lender allows for an LLC borrower with a personal guarantee.Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.