How to finance through LLC?

Question

We live in Michigan.

I took out a home equity line of credit on our primary residence.

We bought a 2 family flat

Rehabbed & moved in 1 of the units & rented our primary residence & rented the other unit.

Now I’m looking to cash out refi in my business name major moves investments LLC & rent from my business & pay off the heloc .

Any information or advice would be helpful.

Andrew Postell · Answer

@Lawrence Jenkins I would HIGHLY recommend to not focus on building business credit using your primary home.  Stay with that personal rate.  I think I could write a book here on this but for the sake of time - just trust me that you should be using a residential loan for your primary home.  100%.

Justin B. · Answer

@Lawrence Jenkins rates have nowhere to go but down

Andrew Postell · Answer

@Lawrence Jenkins Just trying to make sure that I understand your situation 100%

• You own a rental property that used to be your primary home.  This home is now rented.  This home also has a HELOC on it.
• You live in a 2 unit "flat"....not really sure what that is exactly - do you mean a "duplex"?  I consider flats similar to an apartment.  But if you own that apartment - then it's a condominium.  I've never seen a 2 unit condominium before.  Usually it's people who own 2 separate condos and not 1 condo with 2 units.  But if this is some weird type of property that's super unique...you may be limited to a business loan anyway.

Sorry to get so detailed here but this is exactly the items that will need to be discussed with any lender to get you into the right loan product. Thanks!

Lawrence Jenkins · Answer

@Lawrence Jenkins

But I do want to pay the heloc off before rates get too high &

Lawrence Jenkins · Answer

@Andrew Postell

Actually I got a heloc on my primary home .

I’m not living in it at the moment , due to the fact I rented it out & moved in the flat while rehabbing , but in a year or two my plan is to move back in my primary residence & rent both units of the flat.

Lawrence Jenkins · Answer

@Andrew Postell

I was just trying to establish business credit in order to grow purchase under the business name.

I was looking separate business & personal

Jason D. · Answer

@Lawrence Jenkins yes. That's what I would do

Lawrence Jenkins · Answer

@Andrew Postell

Thanks for the info very much appreciated

Lawrence Jenkins · Answer

@Jason D.

Thanks , do you think I should just keep the property in my name & cash out refi to pay the heloc off on my other property?

Lawrence Jenkins · Answer

@Aman A.

Thanks I really appreciate the info.

It sounds like it might be best to keep the property in my name & get cash out refi on that property & payoff the heloc?

How to finance through LLC?

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