Equity Line of Credit under an LLc.
I find that the process of getting a equity line of credit can get a bit complicated when the property is under a LLc. See the case study below.
I bought this poor managed property for 150k
50% down payment, seller's finance.
I've put in renovation about 35k
Increased rent by 20%, up to fair market price.
Comparable are on the 275k+
Seller currently holds a note for 50k
Equity about 225k
My plan is:
A- Get an Equity Line of Credit for 125k so that I can use it on my next fix and flip deal.
B- Put a mortgage on it for 150k and maintain positive cash flow, pay off the 50k note and keep 100k liquid in the bank so that I can use it on my next fix and flip deal.
I've approached 3 mortgage guys, here is what they are saying.
Refi under my personal name, pay off the 50k note, and comeback to them six month later and than do the Equity Line of Credit.
So here is my questions;
1- What if I want to keep business and personal totally apart?
2- Is what they're saying my only option at this point?
3- Is it that I have not approached the right mortgage guy?
There're some great deals going on in market right now. I feel like i'm missing lots of opportunities by having my cash lucked in this property.
I would truly appreciate a good advise from any of my BP REI collages.