How to finance through LLC?

13 Replies

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.

You would need to look for a portfolio lender or a commercial lender. The rates are usually higher and may not be amortized over a 30 year.

I am currently getting 5.25% 5/1 ARM amortized over 20 years on all my properties in my LLC through a commercial lender.

@Lawrence Jenkins it's usually not advantageous to live in a property, owned by your own LLC, and pay rent to your LLC. I would speak with an experienced CPA before doing this. You lose a lot of tax advantages and end up paying tax twice on the rent you are paying to "yourself".

@Lawrence Jenkins it sounds like you are needing to do a cash out refinance on your primary residence now - do I have that correct?  If so, why not refinance in your personal name?  The rate will be SIGNIFICANTLY lower if you did.  Let us know what the concern might be so that we can advise a little better.  Thanks!

@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%.

@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 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!

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