Real Estate Investor · Ft. Lauderdale, FL · Member since 2012 · 135 posts · 4 votes
I have properties in both my personal name and business LLC name. Some of the ones in my personal name have conventional financing and others are free and clear. Similar with the ones in the LLC, some with private loans and others are free and clear.
I would like to get a business line of credit to help with acquisitions and grow the portfolio. My question is will they look at the properties in my name as well as the ones in the business LLC or only look at the business properties and their performance? I was putting together information for this and didn't know whether to include the personal ones. Also, does it make sense to move any free and clear properties in my name to the LLC so it shows higher revenue? Thanks in advance.
I just (fedex'ing paperwork today) established a business line of credit on a single-property LLC. My paid-off properties are in LLC's. The mortgage bank I usually use wouldn't do HELOCs on investment properties but they referred me to Synovus Bank. As long as the LLC is at least 2 years old, Synovus will offer up to $49,999 just based on your personal credit score and a one-page application. If you want a line above $50,000 you will have to provide more financials. Rate is Prime + 1.5%. The line is reviewed annually with total term of 5 years. Any balance after 5 years jumps to 18% so I'll be sure not to carry a balance after the maturity date. Total fees Florida Doc stamp $173.25, Comm LN Origination Fee $495.00, Comm LN Fee $300, UCC Future Release $10, UCC Fee $35. Total to close $1013.25
I would move the properties that are free in clear to the LLC for the liability protection first and then to also show more income and assets in the LLC. When properties become free and clear they become more vulnerable to lawsuits, so as a precaution, and especially because you already have one setup, I'd move those to the LLC.
Thanks @Mike Hanneman for the response. I was thinking the same to also be able to use those as leverage for a portfolio loan or a LOC using them as collateral. I just didn't know if a back woudl even consider those in their calculations to give me a line on the LLC.
I just (fedex'ing paperwork today) established a business line of credit on a single-property LLC. My paid-off properties are in LLC's. The mortgage bank I usually use wouldn't do HELOCs on investment properties but they referred me to Synovus Bank. As long as the LLC is at least 2 years old, Synovus will offer up to $49,999 just based on your personal credit score and a one-page application. If you want a line above $50,000 you will have to provide more financials. Rate is Prime + 1.5%. The line is reviewed annually with total term of 5 years. Any balance after 5 years jumps to 18% so I'll be sure not to carry a balance after the maturity date. Total fees Florida Doc stamp $173.25, Comm LN Origination Fee $495.00, Comm LN Fee $300, UCC Future Release $10, UCC Fee $35. Total to close $1013.25
@Charlie Miller Thanks Charlie for the detail as this helps a lot. I'll check them out. I will be looking for more than $50K so will need to find out what additional information they would require for that. Do you know if they also will refinance the properties off of the line into long term loans?