I have a rental property in LA under my LLC and I was thinking to tap into its equity for building an ADU in the backyard. The property was bought years ago so its loan is fully paid off already. From what's I've learned so far, most well-known banks won't provide HELOC for LLC but I would like to still double check if anyone knows any small/local lenders willing to do so? Otherwise, what would be other financing options if I were to borrow money for the ADU project?
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
2y
You should be able to get an ADU development loan from companies like Lending One. Your free-and-clear property would be the collateral and the loan would be in the form of a construction loan. You'll have to have the preliminaries, like permits and a builder lined up, but I'd be surprised if you couldn't get a project like an ADU financed for a F&C property.