Austin, TX · Member since 2015 · 30 posts · 8 votes
Anyone have any luck finding a bank that offers HELOC Loans under an LLC? I have found a bank that allows you to purchase rental property under your own name, but keeping the rental property under your name doesn’t provide any asset protection!
Lender · Austin, TX (NMLS #1674054) · Member since 2016 · 108 posts · 50 votes
8y
Hey Gabriel, I have a contact at BB&T that can offer a line of credit for businesses. Let me know if you need their contact information. You could always purchase the property in your personal name and transfer the deed over to your LLC for the asset protection.
Lender · Austin, TX (NMLS #1674054) · Member since 2016 · 108 posts · 50 votes
8y
Hey Gabriel, I have a contact at BB&T that can offer a line of credit for businesses. Let me know if you need their contact information. You could always purchase the property in your personal name and transfer the deed over to your LLC for the asset protection.
Pismo Beach, CA · Member since 2018 · 17 posts · 8 votes
8y
I have called numerous banks about financing through a personal loan and transferring the deed after the purchase to an LLC and they noted they could call the loan in "Due on Sale Clause". You need to be honest with your lender on your intentions, it could backfire on you! Good Luck
Rental Property Investor · Round Rock, TX · Member since 2016 · 1k+ posts · 971 votes
8y
There is no such thing as HELOC on investment properties...but there is Line of Credit (aka Portfolio Line of Credit or Asset Based Line of Credit) that you can get on one or more rental properties. You just need to find the right person at the bank (a commercial lender, not residential one) and ask them about the right product (don't ask about HELOC on rental, if residential lender they will tell you NO, if commercial they will send you to residential officer). Many banks and even local credit unions offers this product, so I suggest you shop around to compare the terms (some lend based on a LTV %, others on LTC %, closing costs and APR will vary wildly, duration and renewal conditions also).
We have one such line of credit secured by the equity in two rental properties that we use to place cash offers and acquire properties that we refinance into long term loans after rehab.